Chinese gold companies rally as gold prices hit six-week high

 

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Shares of Chinese gold and precious metal companies stage a rally as gold price hit the highest in nearly six weeks. In the A-share market, an index tracking gold companies compiled by Wind Information is surging by nearly 3% as of 10:24 am local time, making it the best-performing sector, compared to 0.5% loss for the benchmark Shanghai Composite Index. Chifeng Jilong Gold Mining surges by the daily limit of 10%, Yintai Gold up 4.4%, Hunan Gold Corporation up 4.3%.

In Hong Kong, Taung Gold International Ltd surges by 4%, Zhaojin mining up 2.4%.

In the international market, gold futures closed at their highest level since late June on Tuesday, a day ahead of a closely watched update of the consumer-price index. Gold for December rose 0.4% to settle at $1,812.30 an ounce on Comex, the highest close for the most-active contract since June 29.

Gold has rallied for three straight weeks, helping to narrow the loss for the most-active contract in 2022 to about 3%, according to data from FactSet.

The metal rallied as stocks fell and the ICE US Dollar index slumped against a basket of rival currencies ahead of Wednesday’s CPI update, which is expected to show a slight easing in cost pressures from their blistering 9.1% annual pace in June.