(Yicai) Jan. 26 -- Gold-related stocks listed in China’s mainland and Hong Kong surged today after international gold prices climbed past the USD5,000 and USD5,100 per ounce milestones, fueled by growing expectations of US interest rate cuts and escalating global geopolitical tensions.

As of today’s close, several gold mining and processing firms listed on the mainland hit their daily trading limit-up. China National Gold Group Gold Jewellery [SHA: 600916] rose 10 percent to CNY10.14 (USD1.50), Zhongjin Gold [SHA: 600489] gained 10 percent to CNY33, and Western Region Gold [SHA: 601069] climbed 10 percent to CNY37.75, according to market data.

In Hong Kong, gold jewelry retailer Laopu Gold [HKG: 6181] advanced 7.8 percent to HKD849.5 (USD109), while China Gold International Resources [HKG: 2099] jumped 8.1 percent to HKD235.4.

The rally underscores gold’s renewed appeal as a safe-haven asset amid heightened political uncertainty and signs of economic weakness in the United States. Investors have also increased bets that the Federal Reserve will ease monetary policy later this year, adding further momentum to bullion prices.

London spot gold rose more than 2 percent today, touching a record high of USD5,111 per ounce during intraday trading. Gold has gained 18 percent in less than one month this year and crossed the USD4,000 threshold just over 100 days ago.

Rising geopolitical risks in the Middle East, along with disputes over Greenland that have triggered tariff frictions between Europe and the United States, have prompted several European central banks to accelerate sales of US Treasury bonds while increasing gold purchases, said Liu Tingyu, a fund manager at Maxwealth Fund Management. This shift has pushed gold prices into a sustained rally marked by repeated record highs, Liu told Yicai.

At the same time, US non-farm payrolls data for December came in below expectations, while manufacturing and consumer indicators also showed weakness. Although the probability of a Federal Reserve rate cut in January is close to zero, markets still anticipate a possible 50 basis points cut later this year, Liu added.

The surge in international gold prices has also lifted retail gold jewelry prices in China. Major brands, including Chow Tai Fook, Chow Tai Seng, and CHJ Jewellery, quoted gold jewelry prices of CNY1,578 (USD227) per gram today, up CNY25 per gram from yesterday, Yicai learned from store checks.

Despite higher prices, Chinese consumers’ appetite for gold remains strong. Yicai visited several chain gold stores in shopping malls over the past weekend and found steady foot traffic, with many customers inquiring about prices and making purchases. Some popular stores even required customers to queue before entering.

With the peak season for gold jewelry consumption approaching, driven by the Chinese New Year and Valentine’s Day, short-term demand for gold is expected to remain well supported, industry experts noted.

Editors: Dou Shicong, Emmi Laine