Hong Kong Stock Market Movers: Gold Shares Retreat Again as Kazakhstan Plans to Cut Gold Holdings, Institutions Still See Higher Lows for Gold Prices

Gold shares declined once more. As of press time, Lingbao Gold (03330) fell 4.31% to HK$17.1; Shandong Gold (01787) dropped 2.73% to HK$18.54; Chifeng Gold (06693) slipped 2.22% to HK$34.32; and Zijin Mining (02899) declined 2.13% to HK$32.2.

On the news front, the central bank of Kazakhstan plans to reduce its gold reserves and shift into U.S. Treasuries, lowering the share of gold in its reserves to 75% by year-end. Deputy Governor Moldabekova stated that U.S. Treasury yields are at levels not seen in a long time, making the dollar more attractive and weakening the appeal of gold investment. According to WGC data, in the first eight months of this year, Kazakhstan's central bank was the world's fourth-largest gold buyer.

It is worth noting that China's central bank increased its gold reserves by 23 tonnes in September, further accelerating the pace of purchases. CITIC Securities stated that the core factor behind the gold price decline in September was liquidity tightness amid a sharp rise in U.S. Treasury yields. Investment demand and central bank allocation demand have shown unexpected resilience. The bottom for gold prices may be rising, and the gold sector is expected to lead the way.