Precious Metals Sector Soars 8% Amid Easing Inflation Concerns

The precious metals sector has surged nearly 8% as market concerns about inflation have cooled and expectations for a US Fed interest rate hike in September have pulled back. Oil prices have also retreated sharply, easing Middle East geopolitical tensions. Gold futures are up 1.7% at $4,223.1/oz on the COMEX exchange, while SHFE gold main contract is up 3.1% at 910.4 yuan/g. Silver futures are up 2.53% at $61.77/oz on the COMEX exchange.

Other precious metals have also seen significant gains, with platinum main contract futures up 9.18% at 441.15 yuan/g and palladium main contract futures up 8.51% at 329.65 yuan/g. In individual stocks, Sengda Resources and Sichuan Gold hit the daily limit up.

Market analysts note that the easing of inflation concerns has boosted demand for precious metals as a safe-haven asset. Additionally, the World Gold Council report suggests that investment demand is expected to remain positive in the remainder of 2026.