Chinese Gold Miners Extend Rally as Gold Soars Past $4,000

By Sherry Qin

Chinese gold-mining stocks continued to surge as spot gold passed a new milestone, buoyed by hedging demand amid uncertainty about U.S. policy and global political turmoil.

Spot gold crossed $4,000 a troy ounce for the first time on Wednesday and was recently trading about 1.1% higher at around $4,030 an ounce. The precious metal has been on a tear, advancing more than 50% this year and outperforming major stock indexes amid a rush into alternative assets.

The rally propelled shares of Hong Kong-listed gold miners higher. Zijin Gold International, which began trading last week, jumped as much as 7.9% to 158.90 Hong Kong dollars, more than double its initial public offering price. Shandong Gold Mining rose by the same percentage, while Chifeng Jilong Gold Mining surged as much as 17%.

Chinese stock markets were closed for the Golden Week holiday.

"Gold has staged a historic rally, doubling in less than two years, spurred by central-bank buying as it diversifies away from the U.S. dollar, President Donald Trump's aggressive trade policy and conflicts in the Middle East and Ukraine," ING commodities strategist Ewa Manthey said in a note.

As the U.S. government shutdown extended into the second week, key economic data releases have been delayed, complicating the Federal Reserve's decision-making on monetary policy. Markets continue to expect the Fed to deliver another 25 basis-point cut this month, which would further benefit the precious metal.

Globally, political jitters remain, boosting the appeal of the safe-haven asset. French Prime Minister Sébastien Lecornu resigned on Monday after a month in the job, plunging the country deeper into turmoil, while Japan's ruling party elected fiscal dove Sanae Takaichi as its new leader over the weekend, positioning her to be the country's first female prime minister.

These factors have also added to gold's rally, ANZ analysts said in a note.

Meanwhile, the People's Bank of China extended its gold buying streak in September for an 11th consecutive month despite record prices.

Goldman Sachs sees the yellow metal scaling new highs. It now expects gold to reach $4,900 an ounce by December 2026, compared with $4,300 forecast previously, citing exchange-traded-fund inflows and central-bank buying.

Write to Sherry Qin at sherry.qin@wsj.com

(END) Dow Jones Newswires

October 08, 2025 01:32 ET (05:32 GMT)