CITIC Securities: Expects gold prices to remain high in the second half of the year

Jinshi data, September 10th news, CITIC Securities research report stated that in the first half of 2024, the gold price quickly rose and remained at a high level of volatility. The consumption and investment attributes of gold were clearly reflected: the amount of gold jewelry fell, and the amount of gold bars rose; brands with a high proportion of investment gold (gold bars, gold coins, etc.) had a smaller impact on business performance, and brands with strong design and brand strength and in a period of growth achieved counter-growth. Looking forward to the second half of 2024, it is expected that the gold price will still maintain a high level, and consumers will gradually accept the high gold price, releasing suppressed purchase demand, and franchisees replenishing inventory are expected to drive the recovery of gold jewelry sales; from a brand perspective, brands with a high proportion of investment gold, strong design and brand strength can be realized, and brands that are still in the early growth stage of expansion may perform well; at the same time, pay attention to the incremental business brought by online business and overseas business.