Gold-related stocks are leading the market lower. At the time of writing, ZIJIN GOLD INTL (02259) fell 3.98% to HK$113.3. Shandong Gold Mining Co Ltd (01787) declined 2.45% to HK$22.34. CHINAGOLDINTL (02099) dropped 2.66% to HK$153.8. Chifeng Gold Co Ltd (06693) was down 1.52% at HK$28.42.

On the news front, noted journalist Nick Timiraos, often referred to as the 'new Fed whisperer', pointed out on Wednesday that the first policy meeting chaired by new Federal Reserve Chair Christopher Waller delivered the clearest hawkish signal to date. While the Fed held interest rates steady, the latest 'dot plot' projections revealed that nine officials now believe at least one rate hike will be necessary this year. Notably, the internal judgment within the Fed regarding the future policy path is undergoing a significant shift. Waller stated that five working groups would be established to review how the Fed operates in key policy areas.

Additionally, the World Gold Council released its 2026 Central Bank Gold Reserves Survey on the 16th. The report indicates that 89% of the central banks surveyed anticipate that global central banks will continue to increase their gold reserves over the next 12 months. Simultaneously, the proportion of central banks planning to add to their gold holdings has reached a new high. The report also noted that gold has recently surpassed U.S. Treasury securities to become the largest official reserve asset globally.