Hong Kong Stock Market Movers: Gold Shares Fall Across the Board as Middle East Tensions Escalate and Oil Prices Stay Elevated; Inflation Risks and Rate Hike Expectations Continue to Weigh on Gold

Stock News10:12

Gold sector stocks declined broadly, with Zijin Gold International (02259) dropping 4.65% to HK$127, Chifeng Gold (06693) falling 3.55% to HK$31.54, and Shandong Gold (01787) slipping 3.2% to HK$17.83.

On the news front, tensions in the Middle East are currently escalating, with Brent crude oil sitting at a high of US$110 per barrel. According to reports, US and Israeli military forces have formulated specific plans to launch another military strike against Iran after the US midterm elections conclude, according to US officials and other informed sources. Additionally, the US State Department confirmed it has ordered the evacuation of non-emergency US government employees and their family members stationed in Saudi Arabia.

CITIC Futures believes that gold will maintain rangebound trading in the near term. A slight pullback in the US dollar and US Treasury yields has marginally eased the downward pressure on gold, but energy-driven inflation risks and market expectations for further rate hikes by the US, Europe, and Japan have not yet significantly faded, limiting the upside potential for gold prices. Over the longer term, US fiscal credit risks, central bank gold purchases, and gold allocation demand continue to provide support for the yellow metal.

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