Movement Alert|Lingbao Gold Falls 5.42% in Regular Trading, Strong Non-Farm Data Ignites Fed Rate Hike Expectations Dragging Gold Sector Lower

Market Focus06-10 09:38

On June 10, Lingbao Gold fell 5.42% in regular trading, trading at 13.28 HKD/share, with trading volume of approximately 16.2 million HKD. The decline was driven by escalating Fed rate hike expectations after significantly stronger-than-expected U.S. employment data pressured gold prices and the broader precious metals sector.

On the news front, U.S. May non-farm payrolls surged by 172,000, nearly double the market expectation of 88,000. The Cleveland Fed President Hammack, the most hawkish FOMC voter, stated that it may soon be appropriate to act on rate hikes. Traders have fully priced in a 25 basis point hike by year-end, while Goldman Sachs economists no longer expect Fed rate cuts this year. Spot gold broke below $4,300/oz, having retreated over 20% from highs near $5,300. The gold sector declined broadly, with Zijin Gold International down 4.42%, Zhaojin Mining down 4.54%, SD Gold down 3.81%, and Chifeng Gold down 2.88%.

The company has intensified share buybacks, repurchasing 572,000 shares on June 9 for approximately 7.91 million HKD, and adjusted the maximum buyback quantity to 2.17% of total issued shares to bolster investor confidence.

(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.)

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment