HK Stock Market Move | Gold stocks hit a new low again. Trump's clear victory in the election boosted the US dollar, causing safe-haven funds to possibly change direction.

The price of gold stocks has once again dropped. As of the time of writing, Zijin Mining Group (02899) has fallen by 4.8% to HK$15.86; CHINAGOLDINTL (02099) has dropped by 4.09% to HK$34; Shandong Gold Mining (01787) has fallen by 3.86% to HK$14.44; LINGBAO GOLD (03330) has dropped by 3.35% to HK$3.17. In terms of news, following the news of Trump's election affecting the global market, the price of gold temporarily dropped by 1.5%, US Treasury bond yields rose significantly, and the US dollar saw its largest increase since 2022. Some analysts believe that the recent fluctuations and drop in international gold prices were expected. Based on historical data, the volatility of gold prices tends to increase around each US election. Specifically, with international gold prices hitting historical highs multiple times this year, the time for profit-taking is approaching, as investors may choose to cash out. Additionally, after the US election results, a significant amount of safe-haven funds may shift direction, with some funds exiting the gold market. Zhongjin believes that with Trump's victory becoming definitive, the future trend of gold is becoming increasingly clear. Based on Trump's core policy proposals of "lowering rates, increasing income, and raising tariffs," the US is likely to experience a second round of inflation, which will benefit gold. Furthermore, considering that the Federal Reserve has entered an interest rate cutting cycle, and the high level of US government debt is difficult to change in the short term, the attractiveness of the gold market will continue to strengthen. Therefore, the short-term correction does not change the upward trend.