From Barron’s: 2024-04-04 08:56:00

Shares in Alibaba have fallen over 6% this year and 30% in the past 12 months, leading to questions about value vs. trap. Meanwhile, gold prices have surged to record highs, driven by inflation concerns and central bank buying, with China’s retail investors also boosting demand for the precious metal.

Gold’s rally is supported by various factors, including inflation hedging and weakening dollar expectations. China’s central bank and retail investors have been key drivers behind the surge in gold prices, highlighting the shift in focus from high-tech Chinese stocks like Alibaba. Confidence in domestic markets is crucial for their recovery.

Chinese investors are opting for gold over tech stocks, reflecting a lack of confidence in the market. Gold prices have outperformed shares in high-tech Chinese companies, signaling a preference for the precious metal amid uncertainties in the market.



Read more at Barron’s: Gold Record Gains and Alibaba Stock Woes Are Connected. Why That Matters.