Sou Hu Cai Jing·2026-01-22 10:32Core Viewpoint - International gold prices have continued their strong performance from 2025 into 2026, with prices surpassing $4800 per ounce, driven by multiple factors including geopolitical tensions and economic risks [1][2]. Price Trends - The London spot gold price increased from $2624 per ounce at the end of December 2024 to $4318 per ounce by the end of December 2025, marking a 64.56% increase. As of January 20, 2026, the price was reported at $4763 per ounce, with a peak of over $4800 on January 21, 2026 [1][2]. Factors Driving Price Increase - Key reasons for the rise in gold prices include: 1. Federal Reserve interest rate cuts leading to lower real interest rates, enhancing the appeal of gold as a non-yielding asset [2]. 2. Increased demand for gold due to geopolitical conflicts and rising risk aversion, with central bank purchases and ETF inflows as significant drivers [2]. 3. Global economic risks and debt pressures [2]. 4. Inflation expectations and a weakening dollar [2]. Industry Performance - Upstream mining companies are directly benefiting from rising gold prices. For instance, Zijin Mining Group expects a net profit of 51 to 52 billion yuan for 2025, a year-on-year increase of 59% to 62%, with gold production around 90 tons [3]. - Chifeng Jilong Gold Mining anticipates a net profit of 3 to 3.2 billion yuan for 2025, reflecting a growth of 70% to 81% [3]. - Despite the increase in gold prices impacting gold jewelry consumption, Guangdong Chao Hong Ji Industrial expects a net profit of 436 to 533 million yuan for 2025, a significant increase of 125% to 175% [3]. Strategic Recommendations - Upstream companies should enhance resource reserves and optimize cost structures to seize market opportunities, while downstream companies are encouraged to innovate products and manage price volatility risks through financial tools [4].