SD GOLD's stock price plummeted 5.04% during intraday trading on Thursday, reflecting broader selling pressure across the gold sector in Hong Kong.
The sell-off was triggered by a hotter-than-expected U.S. Producer Price Index (PPI) report, which has intensified market expectations for further Federal Reserve interest rate hikes. Data showed the PPI for April rose 6% year-over-year, marking the highest level since December 2022, while the core PPI increased 5.2% year-over-year, with both figures significantly surpassing market forecasts.
Higher interest rate expectations are typically negative for gold and gold-related stocks, as they make interest-bearing assets more attractive relative to non-yielding gold and can strengthen the U.S. dollar, making gold more expensive for holders of other currencies.
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