The precious metals sector surged, and listed companies collectively experienced significant profit growth.

On August 5, the A-share precious metals sector rose collectively, with the industry index increasing by 7.72%. Sichuan Gold hit its daily limit, Xiaocheng Technology rose by 11.89%, and Zhongjin Gold and Chifeng Gold both increased by over 8%. In terms of news, the main contracts for precious metals futures saw significant gains, with platinum up 9.18% and palladium up 8.51%. Shanghai silver and gold rose by 7.08% and 3.1% respectively, ranking among the top increases in domestic futures. The overseas precious metals market also moved higher, and as of the time of writing, London gold spot prices have once again surpassed $4,100 per ounce, with a rise of over 2%; London silver spot prices even surged more than 4% at one point during trading. The recent price increase in precious metals is primarily influenced by a weaker US dollar and a cooling of expectations regarding interest rate hikes by the Federal Reserve. The US dollar index has dropped about 1.6% in the past seven trading days, providing additional support for dollar-denominated precious metals. A research report from CITIC Securities anticipates that the situation in the Strait of Hormuz will shift from repressing to boosting gold prices, and that the Federal Reserve's monetary policy may be more optimistic than market expectations. Additionally, the surge in US military spending is expected to inflate the deficit, indicating that gold prices are likely to return to an upward trajectory within the year. According to statistics from Securities Times Data Treasure, there are currently eight stocks in the A-share precious metals sector that have announced half-year performance forecasts, and based on the lower limit of the net profit forecasts, all are expected to see increases of over 40%, indicating a continued improvement in industry prosperity. Among these, Zhaojin Gold and Western Gold are expected to see increases exceeding 200%. From a funding perspective, since August, four precious metals stocksZhongjin Gold, Chifeng Gold, Western Gold, and Shandong Goldhave received net financing purchases, with Zhongjin Gold leading with a net financing purchase of 109 million yuan.