Movement Alert|Chifeng Gold Falls 5.1% in Regular Trading, Strong Non-Farm Data Fuels Rate Hike Expectations Pressuring Gold Sector

Market Focus06-10

On June 10, Chifeng Gold fell 5.1% in regular trading, trading at 26.14 HKD/share, with trading volume of 22.13 million HKD. The gold sector extended its post-non-farm data weakness, with the stock continuing a multi-session slide from 30.58 HKD earlier in the month.

On the macro front, the U.S. May non-farm payrolls surged by 172,000, nearly double the market expectation of 88,000. The rate market has fully priced in a 25-basis-point Fed rate hike before December, with the 10-year U.S. Treasury yield spiking to 4.55%. Spot gold broke below $4,300/oz as the strong dollar continued to pressure dollar-denominated commodities. Goldman Sachs economists no longer expect a Fed rate cut this year, pushing their forecast for the final two cuts to mid and late next year.

Within the Gold sector, peers declined broadly: Zijin Gold International fell 4.7%, Zhaojin Mining fell 4.85%, Lingbao Gold fell 4.77%, and SD Gold fell 3.99%. Additionally, the company previously announced the early termination of its third employee stock ownership plan and the buyback and cancellation of approximately 15.18 million A-shares due to gold production missing assessment targets, with market sentiment still digesting this negative development.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)

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