China's asset boom! Gold and silver prices are rising, while international oil prices collectively decline.

(Source: China Business News)

Reprinted from: China Business News

On March 25 (local time), the three major U.S. stock indices all closed higher, with technology stocks and Chinese concept stocks surging significantly; international oil prices declined, precious metals generally rose, and gold stocks strengthened. Chinese assets exploded, outperforming the overall market.

Most international precious metal prices closed higher. As of press time on March 26, spot gold was at $4,516.6 per ounce, and spot silver was at $71.53 per ounce.

PART 01

Chinese Assets Explode

On March 25 (local time), the three major U.S. stock indices all closed higher. The Dow Jones Industrial Average rose 0.66%, the S&P 500 increased 0.54%, and the Nasdaq gained 0.77%.

Most large tech stocks rose, with the Wind U.S. Tech Seven Giants Index up 0.80%. AMD and Intel both rose over 7%, Amazon increased over 2%, Nvidia, TSMC, and Qualcomm rose over 1%. Tesla, Apple, Meta, Google-A, and Broadcom saw slight gains, while ASML, Microsoft, and Oracle declined slightly. Micron Technology fell over 3%.

Chinese assets surged, outperforming the broader market. The Nasdaq China Golden Dragon Index rose 1.86%, and the Wind China Concept Tech Leaders Index increased 1.93%.

E-commerce sector surged collectively. Meituan soared 14.43%, JD.com rose 8.30%, Pinduoduo increased 4.61%, and Alibaba gained 3.52%.

PART 02

Gold and Silver Prices Rise

On March 25 (local time), most international precious metals prices closed higher. Spot gold increased 0.74% to $4,505.31 per ounce; COMEX gold futures rose 2.30% to $4,503.30 per ounce. Spot silver fell 0.14% to $71.18 per ounce; COMEX silver futures increased 2.70% to $71.44 per ounce.

Escalating tensions in the Middle East heightened geopolitical risks. Federal Reserve officials signaled potential rate cuts within the year, weakening the dollar’s appeal. Coupled with market concerns over inflation pressures, risk aversion sentiment increased, supporting precious metals prices.

Regarding news, Federal Reserve Board member Stephen M. Mullan said, “I have raised my policy rate forecast by 0.5 percentage points, not because of oil prices and Iran, but because of the inflation data we received.” On March 25, Mullan stated at an event in New York that he was referring to the economic forecasts released after last week’s policy meeting. “This roughly puts my forecast at a neutral level.”

Mullan indicated that a 1 percentage point rate cut this year remains appropriate to bring rates back to a neutral level. “I don’t think the economy needs aggressive monetary easing to accelerate growth. I also don’t think we need to suppress the economy; current policies are somewhat tight and are restraining growth.”

Gold stocks performed strongly, with Harmoni Gold up over 5%, AngloGold over 4%, Jindal Gold over 4%, Goldros Gold over 4%, El Rado Gold nearly 4%, and Barrick Gold over 2%.

PART 03

International Oil Prices Decline

International oil prices collectively declined. WTI main futures fell 1.15% to $91.29 per barrel; Brent main futures dropped 2.18% to $98.04 per barrel.

Goldman Sachs believes that flow through the Strait of Hormuz may gradually recover from mid-April. If upstream disruptions intensify, oil prices could remain above $100 per barrel over the next two years.

Regarding the downward trend in oil prices, Huatai Futures believes that a series of domestic and international regulatory policies aimed at curbing rapid oil price increases are the core factors causing prices to retreat after rising. However, policies can only temporarily stabilize market fluctuations and cannot fully eliminate uncertainties caused by geopolitical tensions. In the long term, the key variables for futures prices still depend on the duration and final outcome of this conflict.

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(Note: This article does not constitute any investment advice.)

Compiled by China Business News from China Fund News, Securities Times, Yicai, and Cailian Press.

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