Zhaojin Mining (01818) saw its shares jump more than 11% in early trading on Tuesday, with the stock last changing hands at HK$26.48, up 11.26%, on a trading volume of HK$347 million.

The rally comes after the US Treasury Department announced on August 19 that it would at least double the size of its liquidity support repurchase operations for long-dated nominal Treasury bonds, covering maturities of 10 to 20 years and 20 to 30 years. Each operation, previously capped at US$2 billion, will now be at least US$4 billion. The Treasury said the increase reflects its desire to provide greater liquidity in the long-dated nominal Treasury segment.

Analysts at Huayuan Securities noted that from a medium-term perspective, the market's core trading logic has shifted to a pricing chain of "moderate inflation decline plus weakening employment data leading to a loosening of the Fed's high-rate cycle and lower expectations for rate hikes this year." The overall market is likely to gradually complete its bottoming process amid sustained volatility.

In the later stages of the US economic cycle, the economy faces multiple constraints, including high interest rates, credit contraction, and slowing growth. Regardless of whether the Fed ultimately cuts rates due to an economic slowdown or is forced to maintain higher rates for longer due to persistent inflation, gold retains strong long-term allocation value.