Gold stocks are experiencing widespread pressure in today's session. At the time of writing, Tongguan Gold (HKG: 0340)

has declined by 4.98% to HK$2.10. Zijin Mining International (HKG: 2259)

is down 3.86% at HK$124.70. Lingbao Gold (HKG: 3330)

has fallen 3.63% to HK$15.92. Chifeng Gold (HKG: 6693)

dropped 2.29% to HK$29.86, while Shandong Gold Mining (HKG: 1787)

is down 1.92% at HK$23.50.

Market sentiment is being influenced by recent developments. Concerns over escalating tensions in the Middle East intensified, leading to a surge in international oil prices overnight. However, spot gold prices retreated, falling below the $4,500 per ounce level. Reports from Iran indicate plans by Iran and the "Axis of Resistance" to completely block the Strait of Hormuz and initiate actions in other strategic areas, including the Bab el-Mandeb Strait.

Concurrently, expectations for the Federal Reserve to raise interest rates are strengthening. The latest data showed the U.S. ISM Manufacturing Index for May reached a four-year high. This has prompted traders to increase bets that the Fed's next policy move will be a rate hike. Interest rate swaps now fully price in expectations for a rate increase by March 2027.