According to Zhitong Finance APP, gold stocks weakened once again. As of press time, CHINAGOLDINTL (02099) fell 3.72% to HK$194.1; CHIFENG GOLD (06693) dropped 2.92% to HK$32.62; SD GOLD (01787) declined 1.55% to HK$18.39.
On the news front, rising oil prices intensified inflation concerns, causing spot gold to fall for four consecutive trading days, briefly breaking below $4,110 per ounce during today's session. Last night, the so-called "compromise plan" between the US and Iran stirred the market. Rumors of a compromise plan in negotiations between Iran and the United States briefly sent oil prices plunging sharply, with stocks, bonds, and gold rising in tandem, but Iran subsequently denied that a deal was imminent, and the gains were ultimately given back.
In addition, this week entered the quiet period ahead of the October 29 monetary policy meeting, with limited public statements from Federal Reserve officials. Everbright Futures believes that the gold market recently remains affected by repeated rate hike expectations. The probability of the Fed continuing to raise rates in October is not high, and what the market is trading is not an "October rate hike" but rather pricing in a "high probability of another rate hike in December." Gold prices are trapped in a narrow trading range defined by "inflation supporting continued rate hikes," but "consecutive rate hikes may cause economic and financial market turmoil, thereby limiting rate hikes."
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