Hong Kong-listed gold stocks fell broadly, with Chifeng Gold, Shandong Gold down over 6%, and Zhaojin Mining, China Gold International down over 5%; Tongguan Gold down over 4%.

Spot gold in Asia saw a brief drop at the open, falling below $3,370 per ounce and currently trading at $3,369.38, down 0.8% on the day.

According to Wang Jie (alias), a proprietary trader at a Shanghai brokerage, the investment logic for gold stocks is shifting as market consensus grows for a long-term rise in gold prices. Investors are moving from focusing on short-term production growth to prioritizing companies with larger reserves, which are now seen as more valuable.

Analysts note that gold stocks are closely correlated with spot gold prices, such as London Gold and COMEX futures. If expectations for Fed rate hikes increase, the US dollar strengthens, or inflation eases, gold prices could come under pressure, dragging down gold stocks.