Wire flash
Hong Kong gold stocks fall, Zhufeng Gold down nearly 5%
Editorial responsibility
- No named human review is recorded for this page.
- Source reporting is collected, normalized, translated or condensed automatically when needed.
- Automatically published source-backed update
Hong Kong-listed gold mining stocks declined sharply, with Everest Gold down 4.92%, Shandong Gold down 4.05%, and Jihai Gold down 3.03%, among others. The sell-off 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%, and the 30-year yield gained 8.49 basis points to 5.482%. COMEX gold futures fell 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 range. However, the firm expressed a medium-term optimistic view, arguing that as consumer acceptance of current gold prices improves, pent-up demand for gold purchases could rebound, leading to stronger-than-expected operational performance for gold companies.
Source report
As of the time of writing, gold-related stocks listed in Hong Kong have continued to decline:
- Zhufeng 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
On the news front, four Federal Reserve officials recently delivered hawkish remarks, raising expectations for an October interest rate hike and pushing U.S. Treasury yields higher:
- 2-year U.S. Treasury yield: Rose 2.49 basis points to 4.914%
- 3-year U.S. Treasury yield: Rose 2.94 basis points to 4.998%
- 5-year U.S. Treasury yield: Rose 5.8 basis points to 5.054%
- 10-year U.S. Treasury yield: Rose 8.36 basis points to 5.196%
- 30-year U.S. Treasury yield: Rose 8.49 basis points to 5.482%
In response to these developments, COMEX gold futures fell 0.19% overnight, closing at $4,310.1 per ounce.
Analyst Outlook
According to research from Sinolink Securities, gold prices are expected to remain volatile in the short term due to fluctuations in Federal Reserve policy expectations. However, the firm advises against excessive pessimism over the medium term, noting that overall stability supports a marginal recovery in end-user demand.
The brokerage believes that as residents become more accepting of current gold prices, demand for value-preserving consumption is likely to rebound. Previously suppressed gold purchasing demand is expected to return in a concentrated manner, providing ample room for earnings recovery. The sector's actual operational performance in the coming period is likely to significantly exceed current market consensus expectations.
Source
金吾资讯Neutral / independent
Part of this Story
**Hong Kong Gold Stocks Plunge as Hawkish Fed Signals and Rising Yields Weigh on Sector**