Gold stocks are among the leading decliners in the Hong Kong market. At the time of writing, Lingbao Gold (03330) has fallen by 6% to HK$17.39. Chifeng Gold (06693) is down 5.1% at HK$33.10. Zijin Mining (02899) has dropped 3.61% to HK$34.08, while Zijin Gold International (02259) has declined 2.74% to HK$135.00.

Spot gold prices have been volatile and trending lower. As of the latest update, the price has fallen below $4,500 per ounce, marking a daily decline of 0.29%.

Market sentiment is being weighed down by renewed geopolitical tensions and inflation concerns. Recent reports of U.S. military activity in southern Iran and rising risks of Israeli actions against Hezbollah have rekindled fears of an escalation in regional conflict, which could fuel inflationary pressures.

Adding to the cautious tone, former New York Fed President William Dudley warned on Tuesday that the case for interest rate cuts is currently "weak," suggesting the neutral interest rate may be higher than the Federal Reserve currently assumes.

Looking ahead, CITIC Futures analysts believe gold is likely to remain range-bound in the short term. They advise that long positions should be approached with caution, given the risk of a renewed flare-up in geopolitical tensions. Key factors to monitor include substantive progress in U.S.-Iran negotiations and upcoming economic data, such as the April PCE report and durable goods orders. Over the medium to long term, the core bullish drivers for gold remain intact.