Recently, the gold market has experienced a remarkable surge, capturing the attention of both investors and the general publicOn October 18, gold prices reached historical heights in London, and just a few days later, on October 23, they broke previous records againAccording to Wind statistics, this surge marked the 36th time this year that gold has hit new all-time highsIn tandem with these developments, retail prices for gold jewelry have also seen significant increases, surpassing 800 yuan per gram across various brandsThis bullish trend has invigorated the stock market, especially within the gold sector, where shares have shown sustained improvement.

Amidst these fluctuations, analysts speculate that there could be a further 10% increase in gold prices in the short termOn October 23, during trading, the price of gold surpassed the previous high of $2,748 per ounce observed on October 22, setting another record in its historical timeline

Industry experts highlight four key factors driving this bullish sentiment: first, increasing global economic uncertainty propels investors to view gold as a safe haven; second, loose monetary policies, which typically depreciate currency values, elevate gold prices; third, geopolitical risks that incite market caution similarly boost gold’s stature; and finally, inflation pressures that underscore gold's role as an anti-inflation asset also contribute to rising prices.

Research from the investment bank, Founder Securities, supports this perspective, acknowledging that escalated geopolitical risks and central banks around the world expressing support for increased gold reserves significantly propelled prices upward last weekGiven emerging signs of a downturn in the U.Seconomy, it is expected that the upward trajectory for gold prices could continue in the forthcoming rate-cutting cycle, reinforcing the bullish market outlook.

How high can gold prices rise? Recently, Citigroup published a report noting that, despite weak physical retail demand in Asia, the performance of gold and silver remains robust—even after the Federal Reserve reduced rates by 50 basis points last month and despite strong non-farm employment numbers

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The report suggests that an escalation in Middle Eastern tensions could also prompt further increases in gold prices.

In line with these forecasts, Citigroup has raised its three-month gold price expectation from $2,700 per ounce to $2,800 per ounce, with a longer-term forecast of $3,000 per ounce expected in 6 to 12 monthsThis bullish outlook is gaining traction in the market, as analysts like Vivek Dhar from the Commonwealth Bank of Australia foresee average gold futures potentially hitting $3,000 per ounce by the fourth quarter of 2025. This projection implies that gold futures may still have about 10% growth potential in the near term.

As gold futures soar, the prices of physical gold are climbing as wellNumerous jewelry stores have reported prices exceeding 800 yuan per gram, showing a significant rise from earlier this year when major jewelry brands priced their gold offerings between 717 and 719 yuan per gram in early April

This dramatic escalation in gold pricing has ignited a frenzied interest in gold trading, leading to substantial gains among gold-related ETFsNotably, the Huaan Gold ETF and the E Fund Gold ETF reached historic highs on October 23, with year-to-date rises close to 30% for these investment instruments.

Both ETFs announced that their current investment portfolios are primarily focused on precious metals rather than equitiesThe managers of the Huaan Gold ETF remarked that in the long term, the United States currently faces dual pressures from high debt and high interest rates, which may worsen the fiscal burden and impact the dollar's credibilityIn response, the need for gold as a strategic asset is becoming increasingly pronounced.

Moreover, recent activity in the stock market shows a strong rally among gold-related stocksFor instance, the company Xiaocheng Technology has seen its share price rise by approximately 65.37% since the market uptick on September 24, while the Shanghai Composite Index has risen by less than 20% in the same period

Additionally, Xiaocheng Technology's stock has doubled in value since the beginning of the yearHowever, the broader gold sector is characterized by a more gradual "slow bull" trendDespite a total of nine gold stocks rising this year, most other gold equities have recorded increases in the range of 10% to 50%.

This steady growth in gold stocks correlates with their robust fundamental performanceAccording to Wind data, 10 out of the 11 gold stocks in the Shenwan Gold industry reported profits in the first half of the year, with nine of those showing an increase in profitabilityNotably, both Western Gold and Chifeng Gold saw their earnings double compared to the previous year, a trend attributed to increased sales volume and higher selling prices of their mined gold.

With the third quarter earnings reports on the horizon, the positive financial performance of gold stocks continues to impress

Companies such as Hunan Gold, Shandong Gold, and Shanjin International have all projected fast growth in their third-quarter earningsFor instance, Hunan Gold anticipates a net profit attributable to shareholders of between 647 million to 689 million yuan for the first three quarters of the year, reflecting an increase of 68.50% to 79.40% compared to the previous yearThe company attributed this rise primarily to higher sales prices for gold, antimony, and tungsten products compared to last year.

Similar forecasts of strong performance have emerged from Shandong Gold and Shanjin InternationalFor those investors seeking potential opportunities among gold stocks, companies that have yet to disclose their earnings could be worth monitoring closelyNotably, Shanjin International recently released its third-quarter report and reported that among its top ten circulating shareholders, in addition to two insurance fund products and two social security funds that increased their stakes, the storied Kuwaiti Investment Authority has also become one of the company's top ten circulating shareholders.

In conclusion, the recent bullish trends in gold prices and related equities illustrate a compelling narrative of economic uncertainty driving investment behavior