China Securities Co., Ltd.: Long-term trend of metals and non-ferrous commodities remains bullish.
Fed Chairman Powell said that the second quarter economic data has given policymakers more confidence in achieving sustainable inflation to the 2% target.
His statement may pave the way for an interest rate cut in the near future.
Powell mentioned three latest inflation data, but he made it clear he has no intention of sending any specific signals about the timing of interest rate cuts.
China securities co.,ltd. research report pointed out that precious metals and limited-supply non-ferrous commodities have performed well in the first half of the year, mainly reflecting three core logics:
Excessive issuance of US dollars, credit restructuring, the US rate cut cycle is about to begin, and global geopolitical tensions.
Supply constraints, double carbon-related policy constraints, resource protectionism prevailing, and insufficient capital expenditure leading to supply rigidity constraints.
Demand surged, and the fourth industrial revolution led to a significant increase in demand for related metals, especially small metals, which are enjoying a high profile now.
Looking forward to the second half of the year, although weak US data recently caused market concerns about trading recession, even if the US economy weakens, its impact on the direction of new production forces in the world is limited, and the above three core logics have not changed. The long-term trend of precious metals and non-ferrous commodities is still bullish, but the current allocation pace is more important. Recommended sequence: small metals > precious metals > basic metals.
Precious metals + non-ferrous related enterprises:
SD Gold (01787), Zhaojin Mining (01818), Lingbao Gold (03330), Zijin Mining Group (02899), Chinagoldintl (02099), and CMOC Group Limited (03993), etc.