Gold-related stocks opened broadly lower in Hong Kong. As of press time, CHINAGOLDINTL (02099) fell 3.31% to HK$125.7, TONGGUAN GOLD (00340) dropped 2.92% to HK$2.66, SD GOLD (01787) declined 1.73% to HK$33, CHI SILVER GP (00815) slipped 1.56% to HK$0.63, and CHIFENG GOLD (06693) decreased 1.43% to HK$28.96.

The weakness follows a significant pullback in gold and silver prices on October 27. Spot gold plunged 3%, briefly breaking below the $3,900 level. CITIC Futures noted that recent trade progress between China and the US in Kuala Lumpur, including the US temporarily lifting its threat of 100% tariffs on Chinese goods, has reduced safe-haven demand, weighing on short-term gold prices.

SWS Research stated in a recent report that gold is no longer a wise short-term investment choice. With "long gold" positions identified as the world's most crowded trade in Bank of America's survey, highly leveraged gold ETF positions have begun unwinding, triggering a rapid retreat from historic highs. Current high volatility has severely eroded gold's risk-reward ratio. However, the institution maintains that gold still holds allocation value from a medium-to-long-term perspective.