Movement Alert|SD GOLD Falls 3.36% in Regular Trading, Fed Hawkish Rate Hike Signals Continue to Weigh on Gold Sector

Market Focus09-24

On September 24, SD GOLD fell 3.36% in regular trading, trading at HK$20.76/share, with turnover of HK$45.54 million.

The decline was primarily driven by the ongoing fallout from the Federal Reserve's hawkish monetary tightening stance. The Fed raised interest rates by 25 basis points on September 17 to a target range of 3.75%-4.00%, marking the first rate hike since July 2023. The updated dot plot shifted the year-end federal funds rate median forecast from 3.8% to 4.1%, with 16 officials projecting at least one additional hike this year. Fed Chair Waller emphasized that U.S. inflation remains elevated with little evidence of a sustained downtrend.

The U.S. dollar index reclaimed the 100 level while the 10-year Treasury yield held at elevated levels, creating a rising real-rate environment that continues to suppress gold prices. Spot gold remained under pressure near $4,242/oz. The broader gold sector declined in tandem, with ZIJIN GOLD INTL down 3.96%, ZHAOJIN MINING down 2.57%, LINGBAO GOLD down 2.45%, CHINAGOLDINTL down 2.37%, and CHIFENG GOLD down 1.84%.

(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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