Gold-related stocks experienced collective declines. At the time of writing, TONGGUAN GOLD (00340) fell 3.81% to HK$2.78. CHI SILVER GP (00815) dropped 3.53% to HK$0.41. Shandong Gold (01787) decreased 2.55% to HK$27.54. Zijin Mining International (02259) declined 2.5% to HK$147.9. The market movement is attributed to escalating tensions in the Middle East, a sharp rise in crude oil prices, and a strengthening US dollar, which led to a significant drop in gold prices. The June gold futures contract on the COMEX fell below $4,600 per ounce. However, Huayuan Securities suggests that the resurgence in inflation expectations, driven by higher oil prices, is tempering market optimism about rapid interest rate cuts by the Federal Reserve. Concurrently, weakening growth expectations and an increased probability of a US economic recession are reinforcing gold's value as both a safe-haven asset and a hedge against policy shifts. The firm believes that gold's current strength does not rely solely on expectations of immediate Fed rate cuts but is instead supported by a more robust medium-term foundation amid persistent high inflation and downward pressure on growth.