Gold stocks in Hong Kong continued to face selling pressure. As of writing, Lingbao Gold (03330) fell 4.94% to HKD 18.85; China Gold International (02099) declined 4.14% to HKD 155.1; Zijin Mining (02899) dropped 3.98% to HKD 33.76; Chifeng Gold (06693) was down 3.88% to HKD 36.18; and Zijin Gold International (02259) decreased 2.48% to HKD 149.2.

The broader precious metals sector experienced a significant pullback, pressured by the simultaneous rise in US Treasury yields and the US Dollar Index. On the morning of May 18th, spot gold briefly fell below $4,500 per ounce for the first time since late March. At the time of writing, the yield on the US 10-year Treasury note had climbed to 4.627%, its highest level since February 2025, while the 30-year yield rose to 5.154%.

Markets are currently pricing in the potential for the Federal Reserve to raise interest rates. Data from the London Stock Exchange Group shows that US money markets are now pricing in a 64% probability of a 25-basis-point rate hike by the end of the year, and fully pricing in one rate hike by March 2027.

Adding to market uncertainty are near-term geopolitical tensions. US President Trump threatened on the 17th that Iran would be left with "nothing" if it did not act swiftly. Concurrently, Brent crude oil prices broke through $110 per barrel.

Analysts at Guotou Futures noted that, in the short term, the unresolved US-Iran negotiations mean that while both sides seek an exit, they will likely maintain a tough stance to secure greater leverage. The timing for the reopening of the Strait of Hormuz has become a central factor for global commodity trends. With market sentiment swaying by war-related news, gold prices currently lack clear directional guidance.