Gold-related stocks are trading higher across the board. At the time of writing, Lingbao Gold (03330) is up 7.31% to HK$14.68. Chifeng Gold (06693) has gained 5.36% to HK$26.36. China Gold International (02099) is 4.99% higher at HK$145.1. Zhaojin Mining (01818) has risen 4% to HK$19.76. Zijin Mining (02899) is up 4.74%, trading at HK$30.48.

The catalyst for the move is a dramatic reversal in Middle East tensions. Former U.S. President Donald Trump had previously announced on social media a plan for a "very severe" attack on Iran. However, approximately five hours later, he reversed course, stating the strike plan was canceled, an agreement was largely finalized, and a potential signing in Europe over the weekend was possible. This development spurred a rebound in spot gold, which briefly climbed back above $4,200 per ounce.

It is noteworthy that the European Central Bank raised interest rates by 25 basis points on the 11th, marking its first rate hike in nearly three years, indicating ongoing global monetary policy tightening. Additionally, data released by the U.S. Labor Department on the 11th showed the U.S. Producer Price Index (PPI) for May rose 1.1% month-over-month, exceeding market expectations. The year-over-year increase was 6.5%, the largest gain since November 2022.