CSOP Gold 2x Long (07299) fell more than 2%, last down 2.49% at HK$21.18, with a turnover of HK$13.5973 million.
On the news front, recent escalation in Middle East geopolitical tensions, such as mutual strikes between Saudi Arabia and Houthi forces and attacks on oil tankers in the Strait of Hormuz, has pushed Brent crude oil to around US$107 per barrel.
Elevated oil prices reinforce expectations of sticky inflation, which in turn drives up US Treasury yields and Federal Reserve tightening expectations, ultimately pressuring gold valuations.
Separately, according to market media reports, Aliya Moldabekova, Deputy Governor of the National Bank of Kazakhstan, said the central bank plans to reduce gold's share of its foreign exchange reserves by about 3 percentage points before the end of the year, bringing it down to around 75%.
The reduction will be carried out through both options and physical gold, each accounting for half.
Orient Futures pointed out that although China's central bank has accelerated its pace of gold reserve accumulation, Kazakhstan plans to increase US Treasury holdings while reducing gold reserves. After the outbreak of the US-Iran war, tightening dollar liquidity increased foreign exchange pressure on emerging markets, and total global central bank gold purchases will further decline this year, weakening the upward momentum for gold prices.
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