Gold-related stocks have resumed their downward trajectory.

As of the latest update, Zijin Mining International (HKEX: 02259) shares fell 7% to HK$96.25, while Chifeng Gold (HKEX: 06693) shares dropped 6.8% to HK$25.78.

Shandong Gold (HKEX: 01787) shares declined 5.15% to HK$17.33, and Zijin Mining Group (HKEX: 02899) shares decreased 4.15% to HK$29.58.

Market sentiment is being influenced by geopolitical developments. The United States has conducted large-scale airstrikes on targets in southern Iran for several consecutive nights.

In response, Iran has reportedly directed Yemen's Houthi forces to potentially block the Bab el-Mandeb strait under certain conditions, which has prompted a swift reaction in international oil prices.

According to the Global Head of Commodity Strategy at TD Securities, a renewed surge in oil prices could drive bond yields even higher.

This scenario might even compel the Federal Reserve to consider raising interest rates as early as September, which would apply sustained pressure on gold prices.

Furthermore, recent comments from Federal Reserve officials have highlighted persistent inflation worries. Dallas Fed President Lorie Logan and Kansas City Fed President Jeffrey Schmid have both cautioned that a single month of improved inflation data does not signify victory.

They indicated that if price pressures fail to recede consistently, further policy tightening remains a possibility. President Logan expressed specific concern that public expectations for high inflation could become entrenched.

She argued that implementing moderate tightening measures now is preferable to being forced into more drastic actions later, making her one of the most explicit and direct officials currently calling for a rate hike.