Movement Alert|ZIJIN GOLD INTL Intraday Decline 3.16% in Regular Trading, Gold Sector Broadly Lower as Fed Rate-Hike Expectations Cap Prices

Market Focus
2 hours ago

On October 8, ZIJIN GOLD INTL declined 3.16% in regular trading, with turnover of HK$194 million. The move came as gold stocks broadly weakened, with SD GOLD down 3.01%, LINGBAO GOLD down 4.38%, CHINAGOLDINTL down 3.07%, ZHAOJIN MINING down 2.06%, and CHIFENG GOLD down 3.05%.

The decline reflected sustained pressure from Federal Reserve policy expectations. The September FOMC minutes released a hawkish signal, with most members seeing the possibility of another rate hike this year amid concerns over energy-driven inflation stickiness, which has kept the dollar and Treasury yields elevated and raised the opportunity cost of holding non-yielding gold. While several institutions maintain positive ratings on ZIJIN GOLD INTL — including an Outperform initiation with a HK$182.2 target and an Overweight rating with a HK$189 target — near-term bullion price volatility continues to weigh on the shares. Central bank buying, including China's 23rd consecutive monthly increase, provides underlying support, but the tug-of-war between rate expectations and physical demand has kept gold in a range-bound pattern.

ZIJIN GOLD INTL is an investment holding company engaged in the exploration, mining, beneficiation, and sale of gold and non-ferrous metals, primarily selling gold bars, doré, and gold concentrate outside mainland China.

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