Zijin Gold International's stock plummeted 5.04% during intraday trading on Monday, reflecting a sharp decline in the broader gold mining sector.
The drop was driven by a combination of falling spot gold prices and shifting expectations for U.S. monetary policy. Spot gold retreated below the $4,700 per ounce mark, pressured by robust U.S. non-farm payrolls data which showed job growth exceeding market expectations. This strong economic data has led analysts to believe the threshold for Federal Reserve interest rate cuts has been raised, with some forecasts, like that from Bank of America, now pointing to potential delays until the second half of 2027.
Furthermore, the sector faced broad-based selling pressure, with other major gold stocks also trading lower. Market sentiment was also cautious amid geopolitical tensions, following critical social media comments from the U.S. President regarding Iran. Analysts suggest the gold market is awaiting clearer directional catalysts, including definitive signals from the Fed and developments on the geopolitical front.
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