LINGBAO GOLD (03330) saw its stock price plummet 5.05% during Thursday's intraday trading session, leading declines among Hong Kong-listed gold-related stocks.
The sharp decline was part of a broader sell-off in the gold sector triggered by hotter-than-expected U.S. inflation data. A report showing the U.S. Producer Price Index (PPI) for April rose 6% year-over-year, the highest level since December 2022, has intensified market expectations for further Federal Reserve interest rate hikes.
Market pricing now indicates approximately a 50% probability of a 25-basis-point rate increase this year. Higher interest rates typically reduce the appeal of non-yielding assets like gold, putting pressure on gold mining stocks such as LINGBAO GOLD as investors adjust their expectations for monetary policy tightening.
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