Gold sector stocks fell across the board, with Lingbao Gold (HKEX: 03330) dropping 9.06% to HK$19.28, Shandong Gold (HKEX: 01787) declining 8.45% to HK$18.31, Tongguan Gold (HKEX: 00340) falling 5.87% to HK$2.405, and Chifeng Gold (HKEX: 06693) sliding 4.26% to HK$34.16.
On the news front, rising U.S. Treasury yields are weighing on precious metal valuations. Last Friday, the 30-year U.S. Treasury yield briefly touched 5.53% intraday, setting a record high since 2004. This morning, U.S. Treasury yields continued to surge, with the 10-year and 30-year yields climbing above 5.20% and 5.50% respectively.
Notably, the current standoff over the Strait of Hormuz is keeping rate hike expectations elevated. According to the latest developments, U.S. President Trump said in an interview that he "expects negotiations with Iran to continue this week." However, just a day earlier, Trump rejected Iran's proposal to end the war.
Since the Federal Reserve implemented its first rate hike in three years recently, multiple officials have called for further tightening. On Friday alone, three Fed officials signaled a hawkish stance, warning about inflation risks. Cleveland Fed President Beth Hammack stated she is concerned that persistently high inflation could lead the American public to gradually view elevated prices as the norm, and the Fed must not allow this to happen. Kansas City Fed President Jeffrey Schmid said inflation remains above the Fed's 2% target, and policymakers have not yet fully resolved the inflation problem.
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