[Pr-Nd oxide continued to weaken, large factories’ evening purchases boosted confidence, medium-heavy rare earth followed the decline.] Yesterday, affected by wild swings in futures prices, most market participants had a strong wait-and-see sentiment. Factories were reluctant to sell and purchase, and some traders continued to sell small quantities at low prices. However, large factories’ purchases in the evening boosted some market confidence, and low-priced supply tightened again. In the medium-heavy rare earth market, prices of dysprosium oxide and terbium oxide also edged down with the market, but most factories kept their offers firm, and the decline was relatively small.

SMM Morning Brief: Overnight, LME copper opened at $13,992/mt, dipped to $13,975.5/mt in early trading, then drifted higher to hit a high of $14,150/mt, before eventually settling at $14,148.5/mt, up 0.75%. Trading volume stood at 20,200 lots, and open interest increased to 253,000 lots, up 1,896 lots from the previous trading day, as bulls added positions. Overnight, the most-traded SHFE copper 2609 contract opened at 107,350 yuan/mt, with an intraday high of 107,840 yuan/mt and a low of 107,300 yuan/mt, and settled at 107,770 yuan/mt, up 0.40%. Trading volume was 38,600 lots, while open interest fell to 214,000 lots, down 2,688 lots from the previous trading day, as bears reduced positions.

[SMM Zinc Morning Meeting Summary: LME Zinc Inventory Continues to Decline, LME Zinc Rises Significantly]: Overnight, LME zinc opened at $3,662/mt, and after opening it rose all the way, touching a low of $3,655.5/mt in early trading and a high of $3,748/mt near the close, finally ending up at $3,745.5/mt, up $84.5/mt, an increase of 2.31%, with trading volume rising to 13,736 lots···

[SMM Silicon-based PV Morning Meeting Minutes: Glass Price Raised, Solar Cell Producers Raised Quotes] Today, quotes in the solar cell market were generally raised, expectations for price hikes heated up, and multiple producers raised their quotes. The quotation range for 183 cells was 0.27-0.275 yuan/W, and those for 210N and 210R were raised to 0.26-0.265 yuan/W. However, downstream module procurement follow-up was weak, with a clear divergence between offer prices and actual transactions, and high prices have not yet been confirmed by actual orders. The market outlook will depend on downstream order performance. If high-priced deals are concluded, there is upside room for prices; if orders are insufficient, quotes may pull back again.

Some distributors' quotations are expected to be raised today, mainly affected by the rise in upstream raw material prices. Module producers plan to raise quotations, driving up distributors' quotations. However, current order support is relatively weak, and prices are expected to remain in a tug-of-war.

[Magnesium Ingot Market in the Doldrums, Drifts Lower; Domestic and Ex-China Demand Remains Weak] Today, the price center of magnesium ingot edged down, consolidating in the doldrums. Producer offers remained firm, but the room for price negotiation on actual orders widened. Downstream only made sporadic purchases on rigid demand, coupled with sluggish procurement due to summer break outside China and heavy price negotiations by foreign buyers. Tight supply of low-priced goods lent support to the market. In the short term, the market will maintain a narrow consolidation pattern on a subdued note.

SMM has learned that the current mainstream quotation for H100 with cabinet and electricity rental has risen to about 78,000 yuan/month; the quotation range for eight-card RTX 4090 rentals is 7,400-8,000 yuan/month, up from previous levels. An IDC service provider reported that downstream operators have a three-year closed budget of 62,000 yuan/month for H100, which is actually difficult to match, and the provider itself has no spot 4090. SMM also learned that buyers of 910B2 in Beijing are interested in the 15,000 yuan/month quotation, and university-side 4090 cloud platforms are quoting 7,000 yuan/month externally. Quotations for both high-end and consumer-grade cards are in an upward trend.

SMM, August 5: Expectations for Middle East geopolitics are shifting toward easing, oil prices have pulled back sharply for two consecutive trading days, and market concerns about inflation have cooled. Expectations for a US Fed interest rate hike in September have pulled back, with multiple positive factors resonating to drive precious metals futures and stocks to strengthen together. In the futures market: As of around 17:12 on August 5, COMEX gold was up 1.7% at $4,223.1/oz; SHFE gold main contract was up 3.1% at 910.4 yuan/g; COMEX silver was up 2.53% at $61.77/oz; SHFE silver main contract was up 7.08% at 15,105 yuan/kg; silver T+D was up 5.8% at 14,988 yuan/kg. Platinum main contract futures were up 9.18% at 441.15 yuan/g; palladium main contract futures were up 8.51% at 329.65 yuan/g. In the stock market: As of market close on August 5, the precious metals sector was up 7.87%. In individual stocks: Sengda Resources and Sichuan Gold hit the daily limit up, while Xiaocheng Technology, Chifeng Gold, Zhongjin Gold, Xingye Silver&Tin, and Shanjin International were among the top gainers. News [South Korea's Central Bank Plans to Purchase Domestically Refined Gold Bars for the First Time in 13 Years] According to South Korean media reports, the Bank of Korea said on Monday that it will cooperate with LS MnM, the Korea Exchange (KRX), and the Korea Securities Depository (KSD) to purchase domestically produced gold for the first time in 13 years through over-the-counter transactions, as heightened geopolitical risks have increased the need to diversify foreign exchange reserves. LS MnM and Korea Zinc produce about 40 to 45 mt of gold annually as a by-product of smelting, of which about 10% is exported. The central bank stated that if relevant enterprises apply, it will consider using the trading and settlement system of the KRX and the storage facilities being prepared by the KSD to purchase some of the gold intended for export. The central bank said it will arrange bulk transactions after prior consultations on price and quantity to limit the impact on domestic gold prices, and that the new channel should reduce foreign exchange risks, since previous overseas purchases were all paid in US dollars. Additionally, the central bank also stated that it purchased a small amount of gold ETFs in Q2. Separately, it was reported that as of July, its gold holdings remained unchanged at 104.4 mt, while South Korea's foreign exchange reserves at the end of June stood at $427.36 billion, including gold reserves worth $4.79 billion. [World Gold Council: Gold Investment Demand Expected to Remain Positive] The World Gold Council report noted that in the remainder of 2026, investment demand is expected to be the main driver of gold demand growth, and will be increasingly supported by over-the-counter trading activities and Asian investment demand. Central banks will remain key gold buyers. High gold prices will continue to suppress gold jewelry demand, but the response of gold ore production and recycled gold supply is expected to be relatively mild. Gold investment demand is expected to remain positive for the rest of 2026. OTC activity and Asian investment demand are expected to play a larger role, while Western gold ETF flows may continue to be sensitive to US Treasury real yields, Fed monetary policy expectations, and the US dollar. Although consumer spending has remained relatively resilient, high gold prices will continue to suppress gold jewelry demand; technology-related gold demand is expected to further benefit from AI investment, but downside risks are accumulating. (Jinshi Data) [Zijin Mining: Terminates Acquisition of United Gold, Plans to Subscribe for 9.2% Equity] Zijin Mining announced on the Hong Kong Stock Exchange that on January 26, 2026, its controlled subsidiary Zijin Gold International signed an Arrangement Agreement with United Gold, under which Zijin Gold International would acquire all outstanding common shares of United Gold for a cash price of C$44 per share, with a total consideration of approximately C$5.5 billion (approximately $4 billion). However, after comprehensive evaluation, both parties believed that certain closing conditions precedent could not be fully satisfied or waived by the deadline stipulated in the acquisition agreement (which had been extended to July 29, 2026) or within a reasonable period thereafter. The parties agreed to terminate the acquisition, and neither party is required to pay a termination fee or any other fees to the other. Meanwhile, the parties separately entered into a Share Subscription Agreement, under which Zijin Gold International intends to subscribe for 12.8 million common shares (representing approximately 9.2% of the enlarged share capital post-issuance) placed by United Gold at a cash price of C$32.55 per share, with a total subscription amount of C$416.6 million, equivalent to approximately $295 million. [Chifeng Gold: Expects H1 2026 Net Profit to Increase by 54%-61% YoY] Chifeng Gold disclosed an earnings forecast on the evening of July 14, expecting its H1 2026 net profit attributable to shareholders to be 1.7 billion yuan to 1.78 billion yuan, up 54%-61% YoY. [Zhaojin Gold: Expects H1 2026 Net Profit to Increase by 347.48%-436.98% YoY] Zhaojin Gold disclosed an earnings forecast on the evening of July 14, expecting its H1 2026 net profit attributable to shareholders to be 200 million yuan to 240 million yuan, up 347.48%-436.98% YoY; recurring net profit is expected to be 80 million yuan to 116 million yuan, up 490.44%-756.14% YoY. [Shandong Humon Smelting: Expects H1 2026 Net Profit to Increase by 81.06%-122.36% YoY] Shandong Humon Smelting disclosed an earnings forecast on the evening of July 14, expecting its H1 2026 net profit attributable to shareholders to be 570 million yuan to 700 million yuan, up 81.06%-122.36% YoY; recurring net profit is expected to be 272 million yuan to 402 million yuan, down 2.03%-33.73% YoY. [Western Gold: H1 2026 Net Profit Expected to Rise 280.16%-333.39% YoY] Western Gold disclosed on the evening of July 13 that it expects its H1 2026 net profit attributable to the parent company to be 500 million to 570 million yuan, up 280.16%-333.39% YoY; and adjusted net profit to be 490 million to 580 million yuan, up 172.96%-223.09% YoY. [Zhongjin Gold: H1 2026 Net Profit Expected at 4.1-4.6 Billion Yuan, up 52.15%-70.7% YoY] Zhongjin Gold disclosed on the evening of July 13 that it expects its H1 2026 net profit attributable to the parent company to be 4.1 billion to 4.6 billion yuan, up 52.15%-70.7% YoY; and adjusted net profit to be 4.05 billion to 4.55 billion yuan, up 36.96%-53.87% YoY. Spot Market Silver On August 5, the morning ex-factory reference average price of SMM #1 silver was 14,556 yuan/kg, up 2.38% from the previous trading day. In the spot market, downstream demand remained sluggish this month, with limited new orders overall. The strengthening silver price further weakened downstream purchase willingness; market transactions mainly relied on support from banking institutions, with deals concentrated around parity, and traders were reluctant to quote. Morning quotations in Shanghai were mostly at parity to a premium of up to 10 yuan/kg against TD; in Shenzhen, some national standard goods were quoted around parity. Although low-priced goods existed, they did not significantly disturb spot trade. Today, the market quoted a discount of 60 to 50 yuan/kg against the most-traded SHFE contract 2610. Overall, expectations for a Strait of Hormuz agreement heated up, inflation concerns eased briefly, and precious metals recovered slightly. In the spot market, the rise in silver prices further suppressed demand, with orders remaining sluggish and trading staying thin. Voices Regarding the future trend of precious metals, some institutions' views are as follows: CITIC Securities research report stated that this year gold prices shot up and then fell rapidly, but we believe gold is still in a major bull market, with reasons including the accelerating expansion of the US fiscal deficit, irreconcilable geopolitical rifts under deglobalization, and continued gold purchases by global central banks providing a floor. Therefore, we think this round of decline in gold prices is merely a temporary correction within the bull market. The current pullback has approached historical extremes, and the $4,000/oz area is highly likely to be the bottom zone for this round. Looking ahead, the impact of the Strait of Hormuz situation on gold prices is expected to shift from a drag to a boost, the Fed's monetary policy may be more optimistic than market expectations, and coupled with surging US military spending driving up the deficit, gold prices are expected to return to an uptrend within the year. Deutsche Bank precious metals strategist Hsueh Michael stated that the "explosive rally phase" for gold prices that began in August 2024 is not yet over, and maintains the forecast of gold at $4,600/oz in Q4 2026. This assessment rests on a triple framework of fair value models, statistical tests, and official demand data, discounting the significant downside risk implied by commodity price ratios. (Zhitong Finance) A research report from CICC Wealth Futures shows: oil prices pulled back, gold rebounded, and currently, the yen's disruption causing moves in the US dollar index is a new disturbance factor, which is expected to have a relatively limited impact on gold price trends. The biggest pressure on gold currently still comes from oil prices. CICC Wealth Futures believes that if oil prices are not excessively strong, the probability of gold maintaining a fluctuating trend or drifting higher is relatively high. Everbright Futures' outlook for August suggests that the short-term gold price trend depends on the evolving US-Iran situation. If the conflict persists or its spillover expands, market sentiment may weaken again, and under liquidity risk expectations, gold prices may continue to underperform. However, if a substantive breakthrough in negotiations occurs, gold prices could stabilize in the short term and undergo a recovery and rebound. At that point, if domestic and overseas financial markets show a synchronized recovery, it can be further confirmed. Nevertheless, it can be expected that with support from rigid central bank purchases and allocation demand, even if a pullback occurs again, the downside should be relatively limited. Additionally, at the Jackson Hole Economic Symposium at the end of August, Warsh may outline a medium-term policy framework. Before that, the US CPI data on the 12th will be a key verification indicator. Overall, gold is likely in a stage of bottom consolidation and sentiment repair, and we hold a cautiously optimistic view. The core risk is that the US-Iran conflict once again pushes oil prices above $90/oz, a significant rebound in US inflation data far exceeding expectations, and the evolving probability of a September rate hike continuing to suppress market sentiment. However, judging from the performance of overseas financial markets and oil prices, a full-scale escalation of the US-Iran conflict is largely unsupported. A Reuters survey showed that after gold prices pulled back significantly from their record highs in January, analysts cut their gold price forecasts for the first time since the end of 2023, though most still expect support from central bank buying and concerns over fiscal sustainability. In the survey of 29 analysts and traders conducted over the past three weeks, the median forecast for gold prices in 2026 was $4,509/oz. That figure is down from $4,916 three months ago and marks the first downgrade in 11 quarters. The average forecast for 2027 is $4,610, compared to a forecast of $5,100 in the previous poll. Gold prices hit an all-time high of $5,595/oz in January, but suffered a sharp pullback in Q2 as the Iran war exacerbated energy inflation and boosted rate hike expectations, marking the worst quarterly performance since 2013. Since the outbreak of the war, spot gold has fallen about 22%. (Jinshi Data APP) Analysts Warren Patterson and Ewa Manthey from ING noted that gold prices rose on Monday, as a sharp decline in oil prices eased inflation concerns and pressured the US dollar and US bond yields. The large drop in oil prices on Monday alleviated inflation worries and the prospect of further monetary tightening. The move came after a pause in US-Iran hostilities. Lower oil prices also weighed on the US dollar and bond yields, improving the outlook for non-yielding assets ahead of this week’s Fed meeting. Markets are now focused on the Fed and the upcoming US inflation data for further guidance on the interest rate outlook. If yields remain subdued, gold prices should continue to be supported near current levels. However, any hawkish surprise from the Fed could limit further upside room in the near term. Commerzbank has lowered its year-end gold price forecast to $4,500 per troy ounce, and now expects platinum to reach $2,000 per troy ounce by year-end, down from a previous forecast of $2,100. Citi said its base case shows that India’s gold imports will remain subdued in the third quarter, despite historically being a seasonal peak for stockpiling. The reasons include ample scrap supply, cautious consumer sentiment and local price discounts curbing demand for fresh imports. However, Citi maintains its short-term gold price target of $4,500 for 0–3 months. This target, the bank said, assumes an easing of tensions in the Strait of Hormuz and a less hawkish turn by the Fed; in the short term there remain many risks that could push gold prices lower again, including a major re-escalation, AI-driven de-risking, and a persistently hawkish stance by the Fed. UBS gold strategist Joni Teves remains optimistic on the medium to long-term outlook for gold. She noted in her comments that gold prices have been rising since the start of this week, with gold stocks in mainland China and Hong Kong surging around 20% over three days – a positive signal. “We believe confidence in gold is starting to improve and continue to expect that prices will rebound from current levels by year-end,” she said. UBS’s global team remains upbeat on gold’s medium-term outlook and forecasts prices will reach $4,675 per ounce by end-2026 and $4,800 per ounce by end-2027. She indicated that the key events to watch going forward are the Fed’s policy tone at the FOMC meeting at the end of July and further developments in the Middle East. (Jinshi Data APP) Analysts at ANZ Research said in a report that physical demand for the metal and central bank purchases are supporting the gold market. These analysts added that while gold prices face short-term headwinds from the US Fed's tightening expectations and a strong US dollar, after months of outflows from exchange-traded funds, gold investment positions look thin, suggesting limited room for further declines. A high-interest-rate environment typically weighs on non-yielding assets like gold. (Zhitong Finance) Goldman Sachs stated that despite pressure from the US Fed's tightening expectations, central bank purchases are expected to provide a floor for gold. Demand remains robust, with the bank estimating that central banks bought 81 mt of gold in May and the three-month average of monthly purchases at 67 mt, far above the pre-2022 average of 17 mt. Goldman Sachs analysts said, "We believe the trend of central banks increasing their gold holdings will continue for many years as they diversify reserves to hedge geopolitical and financial risks." The bank forecasts average monthly purchases will be 50 mt this year and 40 mt next year. (Jin10 Data) Kim Soojin, analyst at Mitsubishi UFJ Financial Group, said, "Recent price action suggests that the market is placing more weight on the likelihood that US interest rates will stay high for longer rather than on gold's traditional safe-haven demand. This leaves gold vulnerable to pressure unless geopolitical risks further translate into a broad deterioration in financial market sentiment." (Jin10 Data) Fidelity International, an asset manager, said it plans to add to its gold positions again at an appropriate time after reducing them earlier this year, believing gold's long-term momentum remains strong. Ian Samson, multi-asset portfolio manager at Fidelity International, said recently, "We plan to add to our gold positions again; the question is just the timing." He said he reduced his gold allocation to a neutral level from January to February this year, when gold's multi-year bull market abruptly ended. Samson expects the gold market to re-enter a bull market sometime in 2027. The logic for a return to a bull market would only be undermined if "governments re-embrace fiscal discipline and central banks are truly committed to bringing inflation back down," "but I don't think we're in that world right now." Samson also noted that continued central bank gold purchases, a key driver of the previous bull market, will continue to support gold prices. A research report from Guoxin Securities shows that after a deep correction in H1, gold prices near $4,000 are gradually showing signs of bottoming out, with further upside only awaiting event catalysts. It recommends building positions in batches near $4,000 on dips and avoiding chasing rallies. Key allocation logic: First, valuations are at historically low levels, providing a notable margin of safety. After a deep pullback in H1, current valuations of gold mining companies have retreated sharply from the beginning of the year to low levels, offering high odds. Going forward, aside from a valuation repair rally, they are expected to further benefit from the price elasticity driven by rising gold prices. Second, earnings elasticity advantage is significant. Gold stocks act as an "amplifier" for gold prices—the cost of gold mining is rigid, so rising gold prices directly translate into profit growth, making earnings elasticity far exceed the gold price increase itself. A research report from Huayuan Securities points out: from a medium-term perspective, the market’s core trading logic has anchored on the pricing chain of "inflation stickiness and resilience exceeding expectations → extended period of high rates by the US Fed → repeated intensification of rate hike expectations within the year," and gold's price center remains dominated by US real bond yields and the US dollar index, with the overall market likely to consolidate on a subdued note. Ceasefire consultations in the Middle East are currently mired in back-and-forth maneuvering, with the two sides significantly diverging on core demands such as troop withdrawal arrangements, nuclear facility inspection mechanisms, and control rights and toll rules for navigation in the Strait of Hormuz. The recurring geopolitical conflicts continue to disrupt global crude oil supply expectations, and the upside risk of energy prices may further entrench inflation stickiness, in turn supporting the US Fed's tightening policy stance. Meanwhile, the simultaneous rise in the US dollar index and US bond yields is creating a dual suppression effect; coupled with gold's safe-haven attributes temporarily yielding to interest rate pricing logic, the upside room for gold prices may continue to be constrained. Key events to watch over the next two weeks include: 1) developments in the Middle East conflict and navigation conditions in the Strait of Hormuz; 2) the US Fed’s interest rate decision to be announced on July 30; 3) the US June PCE to be released on July 30. In the long term, gold’s bullish logic has not weakened but has been further strengthened amid changes in the global macro and geopolitical landscape. 1) The constraints of US fiscal deficits, debt expansion, rising trade protectionism, and intensifying major-country competition are weakening the stability of the US dollar credit anchor, driving a reallocation of global reserve assets toward diversification. Gold is gradually evolving into an important asset for hedging sovereign credit risks, geopolitical fragmentation risks, and risks of restructuring the global monetary system. 2) Continued gold purchases by global central banks still provide solid bottom support for gold prices, and the PBOC’s continued increase in holdings further confirms the official sector’s long-term allocation demand. 3) The late-cycle US economy faces multiple constraints of high interest rates, credit contraction, and a growth slowdown. In the future, whether the US Fed cuts interest rates due to an economic slowdown or is forced to maintain higher rates for longer due to sticky inflation, gold possesses strong long-term allocation value: the former is favorable for declining real interest rates, while the latter strengthens demand for safe-haven and credit-risk protection. Overall, gold remains in a favorable window in the medium and long term, and its price center is expected to continue shifting upward amid the reshaping of the global macro and geopolitical landscape. Recommended Reading:

[Tungsten Flash] SMM News, August 5: A tungsten enterprise in Xiamen resumed long-term contract price quotations, setting the long-term contract price for externally purchased APT in the first half of August 2026 at 606,000 yuan/mt.

[Shanghai Zinc: Trader Quotations Firm, Spot Premiums Stable] Today, #0 zinc mainstream transaction prices were concentrated in 25,125-25,350 yuan/mt, Shuangyan mainly changed hands at 25,245-25,450 yuan/mt, and #1 zinc mainstream transactions were at 25,055-25,280 yuan/mt. In the morning session, market offers were at premiums of 40-60 yuan/mt against the SMM average price, with no quotes against futures yet...