Gold-related stocks are among the leading decliners in today's session. Elevated oil prices, stemming from geopolitical tensions, are boosting inflation expectations, which in turn is dampening the outlook for interest rate cuts and weighing on the sector.
At the time of writing, Zijin Mining Group Co., Ltd. (HKG: 2899) shares are down 3.33%, trading at HK$33.10. Shandong Gold Mining Co., Ltd. (HKG: 1787) shares have fallen 2.62% to HK$23.08. Other gold stocks are also under pressure.
The market sentiment is being influenced by recent U.S. inflation data for April, with both CPI and PPI exceeding expectations. This has strengthened the view that the Federal Reserve may maintain a restrictive monetary policy for longer. Market-implied probabilities now suggest a roughly 50% chance of at least one more rate hike before the end of the year.
Adding to the cautious backdrop, several major financial institutions have recently revised their gold price forecasts downward. Commerzbank has adjusted its year-end 2026 gold price prediction to $4,800 per ounce from $5,000. Citigroup has expressed a bearish near-term view while projecting a potential rise to $4,300 per ounce over the next zero to three months. Other banks, including JPMorgan Chase, Morgan Stanley, and ANZ, have also issued downward revisions to their forecasts.
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