Gold-related stocks faced broad selling pressure. As of writing, Everest Gold (01815) fell 4.81% to HK$0.99, while SD GOLD (01787) dropped 3.26% to HK$33.28. CHIFENG GOLD (06693) declined 2.61% to HK$41, and LINGBAO GOLD (03330) decreased 1.66% to HK$27.24.
Market sentiment was impacted by renewed Middle East tensions over the weekend, as U.S.-Iran peace talks ended without progress. Additionally, U.S. plans to block the Strait of Hormuz heightened concerns over global energy supply disruptions, rapidly elevating inflation worries. Reports indicated that the U.S. President stated on April 12 that he was unconcerned about Iran returning to negotiations and announced a blockade against Iran effective 10:00 AM Eastern Time on April 13.
Furthermore, U.S. March overall inflation rose significantly, driven by surging oil prices, although core inflation remained moderate. According to CITIC Securities, if oil prices do not continue to rise sharply, the Federal Reserve may confirm by the second half of the year that private-sector inflation expectations remain anchored and that the oil price shock has only a one-time impact. In that scenario, the Fed would have room to ease liquidity, with the institution still expecting one 25-basis-point interest rate cut in the latter half of the year.
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