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Hong Kong gold stocks fall, Zhufeng Gold down nearly 5%
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Hong Kong-listed gold mining stocks declined sharply on Tuesday, with Everest Gold falling 4.92%, Shandong Gold down 4.05%, and Jihai Gold losing 3.03%. The selloff followed hawkish comments from four Federal Reserve officials, which raised expectations for an October rate hike and pushed U.S. Treasury yields higher. The 10-year yield rose 8.36 basis points to 5.196%, while the 30-year yield gained 8.49 basis points to 5.482%. COMEX gold futures slipped 0.19% to $4,310.1 per ounce overnight. Guojin Securities Research commented that gold prices will remain under short-term pressure from Fed policy expectations and are likely to trade in a volatile range. However, the brokerage expressed a more optimistic medium-term view, arguing that as consumer acceptance of current gold prices improves, pent-up demand for gold purchases could rebound, supporting a recovery in terminal demand. The firm believes the sector's actual operational performance could significantly exceed current market consensus expectations.
Source report
Hong Kong-listed gold stocks extended their decline in Tuesday trading. As of press time, the following losses were recorded:
- Zhubao Gold (01815): Down 4.92%
- Shandong Gold (01787): Down 4.05%
- Jihai Gold (02489): Down 3.03%
- Zijin Mining (02899): Down 1.71%
- Zhaojin Mining (01818): Down 1.30%
- Chifeng Gold (06693): Down 1.11%
- Tongguan Gold (00340): Down 1.16%
Market Drivers
The sell-off follows hawkish comments from four Federal Reserve officials, which have raised expectations of an October rate hike and pushed U.S. Treasury yields higher.
Key yield movements:
- 2-year Treasury yield: +2.49 bps to 4.914%
- 3-year Treasury yield: +2.94 bps to 4.998%
- 5-year Treasury yield: +5.8 bps to 5.054%
- 10-year Treasury yield: +8.36 bps to 5.196%
- 30-year Treasury yield: +8.49 bps to 5.482%
Overnight, COMEX gold futures fell 0.19% to settle at $4,310.1 per ounce, pressured by the rising yield environment.
Analyst Outlook
Sinolink Securities commented in a research note that gold prices are likely to remain volatile in the near term due to ongoing uncertainty around Fed policy. However, the brokerage advised against excessive pessimism over the medium term, citing stabilizing fundamentals and improving end-user demand.
The firm expects that as consumers become more comfortable with current gold price levels, demand for value-preserving purchases is likely to recover. This could trigger a concentrated rebound in previously deferred gold buying demand, offering significant upside potential for earnings recovery. Sinolink believes the sector's actual operational performance may substantially exceed current consensus market expectations.
Source
金吾资讯Eastern
Part of this Story
**Hong Kong Gold Stocks Plunge as Hawkish Fed Signals and Rising Yields Weigh on Sector**