Movement Alert|Zijin Gold International Falls 3.22% in Regular Trading, Rate Hike Expectations and Rising Short Selling Pressure Weigh on Gold Sector

Market Focus06-18

On June 18, Zijin Gold International fell 3.22% in regular trading, trading at 115.9 HKD/share, with turnover of 143 million HKD. The decline extends a multi-session selloff in the gold sector driven by macro headwinds and intensifying bearish positioning.

On the news front, spot gold has broken below the key $4,200 level, retreating over 20% from its yearly high. US May CPI came in at 4.2% year-over-year, pushing the probability of a December Fed rate hike to 72%. The strong US dollar and elevated Treasury yields continue to suppress valuations for non-yielding gold assets. Meanwhile, short selling data shows Zijin Gold International's short ratio has climbed to 20.3%, deviating 72.29% from its 30-day average, indicating significantly increased bearish pressure. The world's largest gold ETF, SPDR Gold Trust, has reduced holdings to 1,019.92 tonnes, a yearly low.

Within the Gold sector, Zijin Mining fell 0.42%, China Gold International fell 2.28%, Zhaojin Mining fell 2.9%, Lingbao Gold fell 2.19%, and Chifeng Gold fell 1.25%.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment