The surge in precious metal prices stems from a broader reassessment of inflation pressures and expectations that the Federal Reserve may temper its aggressive monetary tightening. As gold reclaims its momentum, mining companies are recording significant gains: Zijin Gold International rose 6.1%, Shandong Gold-Mining climbed 5.6%, and Zhongjin Gold added 4.0%. Jewelry retailers also captured the upside, with Laopu Gold jumping 9.0% and Luk Fook climbing 4.7%.

Claudio Wewel, a strategist at J. Safra Sarasin, notes that while the market remains volatile, the consolidation seen since January has improved the risk-reward profile for the metal. He expects institutional investors to continue buying on price dips, establishing a support floor for gold in the medium term.