On August 5, the precious metals sector rose 3.24% intraday. Sichuan Gold gained 5.85%, Chifeng Gold rose 3.79%, Zhongjin Gold climbed 3.77%, Xiaocheng Technology advanced 3.48%, and Zijin Mining increased 3.36%. A research note from Guosen Securities pointed out that gold faces short-term pressure, but the medium- to long-term logic remains intact. Global central banks continue to increase their gold holdings, with purchases reaching 243.7 tonnes in the first quarter of 2026, and the People's Bank of China has added to its reserves for 19 consecutive months. A report from Changjiang Securities noted that gold prices experienced three liquidity shocks in the first half of 2026, briefly falling below four thousand US dollars per ounce in late June. However, the suppressing factors are expected to ease marginally in the second half. High interest rates have already begun to undermine US fiscal sustainability. The brokerage maintains a medium-term bullish view and recommends actively adding positions on pullbacks.
