Gold-related equities climbed sharply during Hong Kong trading hours, with Chifeng Jinfu (06693) leading the charge with an 8.92% gain to HK$44.44, while Shandong Gold (01787) advanced 7.59% to HK$27.20 and Lingbao Gold (03330) rose 6.34% to HK$24.84. Zijin Gold International (02259) also gained 4.86% to HK$155.50, with China Gold International (02099) trading 4.78% higher at HK$258.80.

Market sentiment has been lifted by a series of policy signals from US Treasury Secretary Scott Bessent, who indicated that the Treasury could potentially buy back more than $4 billion in long-dated bonds in a single operation. He emphasized that the department possesses a robust set of tools at its disposal, a statement that comes as long-term US Treasury yields have been moving higher again.

Analysts at China International Capital Corporation suggest that increased Treasury buybacks would serve a dual purpose: injecting additional buying support into the long end of the bond market and improving overall liquidity conditions. However, they also note that this approach could weaken confidence in both US Treasuries and the US dollar, positioning gold as the most direct beneficiary of such dynamics.

Looking ahead, CITIC Futures cautions against extrapolating the impact of a one-off buyback operation into a broader trend of easing. The key question moving forward will be whether the decline in long-end yields can sustain itself and whether capital inflows can expand further. Should yields resume their upward trajectory, the precious metal's sharp gains could trigger profit-taking. Nevertheless, medium-term fiscal expansion plans and ongoing debt constraints continue to reinforce gold's strategic value as a portfolio allocation.