Hong Kong Stock Market Moves: Gold Stocks Fall Across the Board as High Interest Rates Weigh on Precious Metals, Market Eyes Tonight's US Nonfarm Payrolls Data

Stock News
1 hour ago

Gold mining stocks declined collectively, with CHIFENG GOLD (06693) dropping 4.35% to HK$34.74, LINGBAO GOLD (03330) falling 4.33% to HK$18.99, SD GOLD (01787) sliding 3.96% to HK$18.96, and TONGGUAN GOLD (00340) shedding 2.65% to HK$2.39.

On the news front, earlier on Thursday, the US 10-year Treasury yield, the "anchor for global asset pricing," briefly climbed to 5.342%, hitting a new high since April 2002, while the US 30-year Treasury yield also rose to its highest level in 24 years.

Notably, uncertainty surrounding the US-Iran situation continued to push oil prices higher, with Brent crude once again rising above the $100 mark.

CITIC Futures believes that the sustainability of gold's rebound depends on whether cooling growth can drive real interest rates lower.

It is worth mentioning that Federal Reserve Vice Chair Jefferson stated that the next move need not be rushed and that incoming data must be carefully assessed before deciding on the next step. Jefferson's remarks echoed those of New York Fed President Williams on Tuesday, who indicated no hurry to raise rates. Following Jefferson's comments, market expectations for a Fed rate hike in October dropped from 35% before the speech to 24%.

Currently, the market is closely watching the US September nonfarm payrolls report due at 8:30 p.m. tonight, as the data will confirm whether the US economy can still withstand a higher interest rate environment.

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