The analyst rating from BOCI is based on the belief that the investment thesis of gold as a safe-haven asset remains valid, despite the recent sell-off triggered by the nomination of Kevin Warsh as the next Fed Chair. BOCI anticipates that the US will cut rates in 2026, which supports their outlook for gold. They expect the average gold price forecast for 2026 to have upside potential from USD4,800 per ounce, leading them to reiterate an Overweight rating on China's gold industry and to recommend buying specific stocks like SD GOLD and ZHAOJIN MINING.
