Gold stocks extended their declines, with Shandong Gold (01787) dropping 3.78% to HK$34.14 by the time of writing. China Silver Group (00815) fell 1.41% to HK$0.70, Chifeng Gold (06693) declined 2.1% to HK$29.78, and Tongguan Gold (00340) slipped 1.84% to HK$2.67.

The market sentiment was weighed down by reports that the European Central Bank has requested the Italian government to reconsider its proposal to declare the country's gold reserves as assets belonging to the Italian people. This move could potentially lead to Italy selling part of its gold reserves. Italy's central bank holds 2,452 tons of gold, ranking as the world's third-largest gold reserve holder.

Notably, central banks in the Philippines and Russia have previously signaled intentions to sell gold. Zijin Tianfeng Futures noted that the Philippines' gold sales were part of foreign exchange management rather than a strategic shift, while Russia's gold sales were a practical measure to ease budget pressures. The firm emphasized that tactical adjustments by individual central banks would not reverse the broader structural trend toward diversification and decentralization in global reserve systems.