Zhaojin Mining (HKEX: 01818) saw its shares climb more than 7% during the session. At the time of writing, the stock is up 6.47%, trading at HK$17.45 with a turnover of HK$201 million.

Federal Reserve Chairman Kevin Warsh noted that inflation expectations have moderated over the past month, reiterating that maintaining price stability remains the core policy objective. This overall neutral-to-dovish stance has been interpreted by the market as indicating a limited probability of near-term interest rate hikes, thereby weakening bets on a further intensification of the tightening path. The market consensus is that the Fed is not currently signaling imminent rate increases, which reduces upward pressure on real interest rates and indirectly supports gold.

One analysis points out that looking ahead to the second half of the year, potential revisions to expectations around three narrative challenges could present opportunities for a recovery in gold investment demand and market prices. The current gold market may have already fully priced in rate hike expectations, creating potential for a pullback. Following the unwinding of previously overweight positions, gold's safe-haven value may return. Additionally, while Gulf central bank gold sales may be replenished, the long-term support from global central bank gold purchases remains intact. The analysis suggests that gold may currently be overpricing expectations for interest rate increases.