Yintai Resources Co Ltd

On August 3, the precious metals sector fell 3.03% intraday, with Chifeng Gold, Xiaocheng Technology, Western Gold, Shanjin International, and Zijin Mining broadly lower. A Changjiang Securities research note pointed out that in the first half of 2026, precious metals were weighed down by both the US-Iran conflict and hawkish rate-hike expectations, with gold prices experiencing three liquidity shocks and briefly dipping below $4,000 in late June. Currently, these two major headwinds are easing marginally: geopolitical impacts are moderating, and oil prices and inflation are retreating. Looking ahead to the second half, the People's Bank of China's de-dollarization gold purchases remain intact, and demand support will gradually return. Moreover, rate-hike expectations have reached an extreme, and high interest rates are eroding fiscal sustainability. Once the 10-year US Treasury yield enters the 4% to 5% high range, the relationship between interest rates and gold is likely to shift from negative to positive correlation, meaning rate hikes are not necessarily bearish for gold. Overall, the firm maintains a medium-term bullish view and recommends actively adding positions on pullbacks. A Shanghai Securities research note also noted that against the backdrop of de-dollarization, emerging market central banks may further increase gold reserves, providing long-term demand support for gold prices. In the second half, moderating geopolitical impacts and retreating inflation are expected to ease liquidity constraints, shifting the sector toward fundamentals-driven performance.