Gold stocks retreated broadly, with China Gold International Resources Corp Ltd (HKEX: 02099) falling 3.88% to HK$176.1, and Zijin Mining Group Co Ltd (HKEX: 02899) dropping 3.04% to HK$29.36, while Shandong Gold Mining Co Ltd (HKEX: 01787) gained 0.60% to HK$18.31 and Chifeng Jilong Gold Mining Co Ltd (HKEX: 06693) edged up 0.06% to HK$32.78, according to market data.

On the news front, the World Bank's latest report indicated that gold and silver prices are expected to remain near historic highs through around 2027, but investors should not expect a repeat of the explosive rally and violent swings seen in 2026. The bank projected that gold would average US$4,600 per ounce this year, up 33.6% from 2025, before pulling back 7.6% to US$4,250 per ounce in 2027 and declining another 5.9% to US$4,000 per ounce in 2028. That assessment was slightly downgraded from its April forecast.

Citi said the outlook for gold prices depends heavily on the evolution of Middle East geopolitics. If tensions in the region ease, gold could reach US$4,500 within three months and challenge US$5,000 in 12 months; if the conflict drags on, prices risk falling back to US$3,500. Resilient ETF holdings and central banks' gold reserves share hitting a 30-year high provide support, but if the US$12 trillion in unrealized gains triggers rebalancing-driven selling, gold prices could see "Bitcoin-style" violent swings.