CHINAGOLDINTL's stock price plummeted 5.03% during intraday trading on Thursday, significantly underperforming the broader market.
The sharp decline in China Gold International and other gold-related stocks was triggered by a hotter-than-expected U.S. Producer Price Index (PPI) report, which has intensified market expectations for further Federal Reserve interest rate hikes. Market pricing now indicates a roughly 50% probability of a 25-basis-point rate increase this year.
Data showed that the PPI for April rose 6% year-over-year, marking the highest level since December 2022, with the core PPI increasing 5.2% year-over-year. Both figures significantly surpassed market forecasts, driven by rising energy and transportation costs, while services inflation hit a four-year high.
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