Gold Stocks in Hong Kong Decline Further as Inflation Fears and Interest Rate Outlook Persist

Stock News05-19

Gold stocks in Hong Kong continued their downward trend. At the latest update, CHINAGOLDINTL (02099) fell 3.07% to HK$153.5; LINGBAO GOLD (03330) dropped 3.07% to HK$18.33; ZIJIN GOLD INTL (02259) declined 2.87% to HK$145.7; ZIJIN MINING (02899) was down 2.21% to HK$33.66; and CHIFENG GOLD (06693) decreased 1.17% to HK$35.12.

The market sentiment is being weighed down by ongoing inflation concerns and interest rate expectations. According to analysis, negotiations regarding the Strait of Hormuz have yet to yield substantial breakthroughs. Coupled with the United States' firm stance towards Iran and related security incidents in the Middle East, the central price level for energy is unlikely to see a significant decline in the short term. The core logic of inflation, interest rates, and the US dollar continues to suppress the price of gold.

Analysts suggest that in the near term, gold remains constrained by both the pressure from inflation and interest rates and a weakening physical demand, potentially leading to a pattern of high volatility with a slight downward bias. Key factors to watch this week include the minutes from the Federal Reserve's meeting, changes in energy prices, and the progress of US-Iran negotiations.

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