Gold-related stocks are leading the market lower. At the time of writing, Zijin Gold International (02259) fell 4% to HK$93.6, Shandong Gold (01787) dropped 3.42% to HK$17.23, Chifeng Gold (06693) declined 3.39% to HK$26.82, and Zijin Mining (02899) was down 2.64% at HK$28.76.
The decline follows a sharp deterioration in the geopolitical situation between the US and Iran, which has significantly increased market expectations for the Federal Reserve to take interest rate hike action. Spot gold prices briefly fell below $4000 per ounce.
Previously, US President Donald Trump announced the reinstatement of a blockade on Iranian ports and the imposition of a 20% toll on all cargo passing through the Strait of Hormuz.
Additionally, Federal Reserve Governor Christopher Waller stated that if core inflation data comes in high again this week, the Fed would need to consider a near-term rate hike. The market is now awaiting today's US CPI data and remarks from Federal Reserve Governor Michelle Bowman.
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