Xin Lang Cai Jing·2026-01-26 10:09Core Viewpoint - The international gold price has surged past the $5000 per ounce mark, leading to a wave of limit-up trading in gold stocks on the A-share market, making them a hot investment opportunity [1][4][21]. Group 1: Gold Price Surge - On January 26, the spot gold price easily broke the $5000 per ounce psychological barrier, setting a new historical high [2][21]. - The gold price has shown a remarkable increase of approximately 15% since the beginning of the year, following a 70% annual increase last year, marking the largest annual gain since the 1979 oil crisis [5][22]. - The speed of gold price increases has been notable, with the price rising from $4000 to over $5000 in just over three months [24]. Group 2: Market Reaction - Following the surge in gold prices, numerous gold stocks in the A-share market experienced limit-up trading, with significant gains observed across various companies [2][19]. - Notable stocks that reached their limit-up prices include Sichuan Gold, Hunan Gold, and China Gold, among others [2][19][29]. - The gold stock index outperformed other sectors significantly, indicating strong market interest and investment in this area [2][19]. Group 3: Factors Driving Gold Prices - The primary drivers of the recent gold price surge include escalating geopolitical tensions and a corresponding increase in market risk aversion [8][26]. - Central banks globally have accelerated their gold purchases, contributing to the sustained rise in gold prices as they seek to optimize their foreign exchange reserves and hedge against geopolitical risks [8][26]. - For instance, the Polish central bank has approved a plan to purchase up to 150 tons of gold, while the People's Bank of China has been increasing its gold reserves for 14 consecutive months [8][26]. Group 4: Future Outlook - Several financial institutions have raised their gold price forecasts, with Goldman Sachs increasing its year-end target from $4900 to $5400 per ounce, citing growing demand from both private investors and central banks [9][27]. - Bank of America has set a more aggressive target of $6000 per ounce, while Jefferies Group predicts a potential rise to $6600 per ounce this year [9][28][29]. - The new Mineral Resources Law, effective from July 1, 2025, allows exploration rights holders to convert their rights to mining rights more easily, potentially benefiting companies with gold mining resources [30][34].