ZHAOJIN MINING

On the morning of July 3, the A-share precious metals sector surged. Zhaojin Gold and Chifeng Gold shot up straight after the opening, hitting their daily limit within one minute and both securing two consecutive upper limits. Western Gold, Sichuan Gold, Xiaocheng Technology, and several other stocks also hit their daily limit or rose more than 10%. In terms of news, the US non-farm payrolls for June increased by only 57,000, significantly missing expectations, and the April and May figures were revised down. The May non-farm payrolls were revised from 172,000 to 129,000, and after revisions, the combined April and May job gains were 74,000 lower than previously reported. The weak employment data led traders to scale back bets on Federal Reserve rate hikes, boosting the precious metals sector.

The precious metals sector rose 4.84% during the session, with Shanjin International up 9.31%, Zhaojin Gold up 9.04%, Chifeng Gold up 7.08%, Zijin Mining up 5.32%, and Xiaocheng Technology up 5.05%. Several major state-owned and joint-stock banks announced they will discontinue their agency personal precious metals trading business with the Shanghai Gold Exchange in July. Industry insiders view this as banks proactively managing risk to guard against customer default and reputational risks under extreme market conditions. A research note from Huatai Securities points out that the precious metals industry's prosperity remains at a high level in 2026, with first-quarter net profit attributable to the parent company surging 109.39% year-on-year and 75.25% quarter-on-quarter. COMEX gold and silver prices rose 63.31% and 157.16% year-on-year respectively in the first quarter of 2026. The industry is gradually shifting from being event-driven to a new phase driven by both policy and reserves. The note suggests focusing on leading gold companies with resource endowment advantages and clear capacity release certainty.