Gold stocks advanced in Hong Kong trading. At the time of writing, Tongguan Gold (00340) rose 6.92% to HK$3.09. Zijin Gold International (02259) increased 6.66% to HK$185.7. Zijin Mining Group (02899) climbed 5.53% to HK$36.26. Lingbao Gold (03330) was up 5.04% to HK$27.1.
The gains followed signals from both the United States and Iran expressing willingness to end conflict, which caused Brent crude prices to drop sharply late in the session on March 31, while gold prices rallied significantly. Analysts noted that prospects for an end to hostilities are expected to lower oil prices and have led to a retreat in the US dollar and Treasury yields, temporarily easing pressure on gold.
However, short-term volatility in gold remains high, and market participants are advised to monitor developments in US-Iran tensions, oil price movements, and the direction of the US dollar. Goldman Sachs commented that the recent decline in gold has been "clearly overdone," with markets overestimating inflation while underestimating growth slowdown risks. The investment bank expects central bank gold purchases to reaccelerate as prices stabilize, with average monthly buying reaching around 60 tonnes. Coupled with expectations for two additional interest rate cuts this year, Goldman Sachs maintains its gold price target of $5,400 per ounce by the end of 2026.
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