The gold sector performed well as a whole. Shandong Gold (01787) rose 4.78%, supported by positive earnings, Zijin Mining (02899) rose 4.76%, Zhaojin Mining (01818) rose 3.62%, and China Gold International (02099) rose 2.93%.
On the news side, entering July, the internationalgold priceIt weakened again, once falling below the $1,700 integer mark. However, in view of the market outlook, CICC recommends overweight gold in the major asset allocation outlook in the second half of 2022. The reason is that gold can hedge against both inflation and growth risks. At present, the main line of the market may be switching from “stagflation trading” to “recession trading”, but the timing of the switch is uncertain.
CICC believes it should increase allocations to assets that are likely to perform better in both environments. From the point of view of logical deduction, the stagflation and recession environment is relatively unfavorable for stock assets, but relatively favorable for gold.
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