Gold-related stocks experienced another decline in Hong Kong trading. At the time of writing, Everest Gold (01815) fell 7.2% to HK$1.16. CHI SILVER GP (00815) dropped 5.21% to HK$0.455. ZIJIN GOLD INTL (02259) decreased 4.39% to HK$174.3. SD GOLD (01787) was down 4.26% to HK$30.98. ZIJIN MINING (02899) declined 3.14% to HK$34.5.

The movement follows news that spot gold prices briefly fell below $4,500 on March 26 before recovering slightly. Geopolitical tensions in the Middle East remain unstable. March 26 marked the twenty-seventh day of military conflict involving the US, Israel, and Iran. Iranian state media reported that Tehran has rejected a US peace proposal, with all parties continuing military offensives.

Additional reports cite Iranian military sources stating that if enemy forces attempt a ground operation against Iranian islands or mainland, or apply naval pressure in the Persian Gulf and Gulf of Oman, Iran may open a new front in the Strait of Mandeb.

Huatai Futures suggests that the primary catalyst for a rebound in precious metal prices would be an easing of geopolitical conflict, which would reduce liquidity concerns and improve market risk appetite. However, geopolitical risks persist, and the US appears to lack full control over initiating a ceasefire. If the US and Iran cannot agree on terms for a truce, the possibility of escalated conflict remains. Strategically, it may be premature to fully shift to betting on conflict resolution in the short term. Therefore, gold prices are expected to remain volatile in the near term.