By Sherry Qin


Chinese gold mining stocks rose sharply in Hong Kong after the precious metal notched a fresh record high on an extended U.S. government shutdown and persistent geopolitical risks.

Zijin Gold International, which debuted in Hong Kong last week, rose 5.1% in early trade on Monday while its parent company Zijin Mining was 2.5% higher. Shandong Gold Mining advanced 5.5%.

Mainland China's stock markets are closed due to the Golden Week holiday.

The gains come against a backdrop of record-high gold prices, buoyed by demand for safe-haven assets amid market volatility and heavy buying from central banks.

Spot gold prices have rallied 49% so far this year to $3,921.28 per troy ounce, before touching a new record high of US$3,924.68 per troy ounce earlier this session.

The safe-haven asset is increasingly appealing given that the U.S. government shutdown is expected to stretch into this week. The shutdown has delayed key labor market and inflation data, complicating the Federal Reserve's decision-making on monetary policy.

Meanwhile, geopolitical risks spanning the Middle East and Ukraine have added to gold's upward momentum.

"These developments are amplifying hedging demand for gold as markets weigh the risk of shocks across multiple fronts," said Samer Hasn, senior market analyst at XS.com in a note.

Gold's rally shows no signs of slowing as global retail investment demand intensifies, said Heng Koon How at UOB Global Economics & Markets Research. Since the yellow metal broke past the psychologically-important $3,500 level, gold has powered higher over the past month, underpinned by demand for gold-backed ETFs, futures and related investment products, said the head of markets strategy.

All of the metal's key long-term positive drivers, especially further dollar weakness and strong allocation from central banks, remain firmly in place, he added. That, plus the surge in retail interest, prompted UOB to lift its price forecasts further beyond $4,000 per troy ounce next year .


Write to Sherry Qin at sherry.qin@wsj.com


(END) Dow Jones Newswires

10-06-25 0015ET