Gold prices surged to a historic high of $3,870 per ounce on Tuesday, igniting a sector-wide rally and fueling a remarkable debut for Zijin Gold International on the Hong Kong Stock Exchange. The newly listed gold giant saw its shares leap over 66% in their first trading session, underscoring investor enthusiasm amid a bullish market backdrop.
The bullion’s intraday gain of 0.95% was driven by growing expectations of interest rate cuts by the U.S. Federal Reserve. With lower rates reducing the opportunity cost of holding non-yielding assets like gold, investors are turning to the precious metal in greater numbers.
Beyond monetary policy shifts, analysts point to continued geopolitical tensions and sustained gold buying by central banks as key factors behind gold’s record-breaking rally. The metal’s status as a safe-haven asset has been further reinforced as market uncertainty persists.
“Gold is increasingly attractive as a long-term store of value in this environment,” said one market strategist. “When central banks are stockpiling and interest rates are expected to fall, it creates the perfect storm for gold prices.”
Riding the wave of gold’s historic high, Zijin Gold International—a subsidiary of China’s Zijin Mining Group—launched one of the most anticipated listings of the year. The company’s shares opened at HK$111.50 and soared to HK$119.50 by afternoon trading, propelling its market capitalization above HK$310 billion.
The IPO success reflects strong investor confidence in Zijin’s growth potential. In the first half of 2025, the company reported a 16% year-on-year increase in gold production, reaching 41 tonnes—an operational milestone that reinforced bullish sentiment around the stock.
The dual momentum of record gold prices and Zijin’s blockbuster IPO is triggering optimism across the broader precious metals sector. Analysts believe this convergence could prompt a revaluation of mining stocks, especially those with strong fundamentals and production growth.
“Zijin’s debut isn’t just a one-off—it’s a signal that the sector is entering a new phase of investor interest,” said a commodities analyst. “We could see a broad rerating of gold miners as capital flows back into the industry.”
With macroeconomic conditions favoring safe-haven assets and market-leading companies like Zijin demonstrating robust performance, the outlook for the gold sector appears brighter than ever.
Main Image: Hong Kong Business
