HK Stock Market Move | Gold stocks strengthened in the afternoon, as market risk aversion sentiment quickly intensified. The upward trend in gold prices remains unchanged.

Gold stocks strengthened in the afternoon, as of the time of writing, LINGBAO GOLD (03330) rose by 14.58% to 4.95 Hong Kong dollars; Shandong Gold Mining (01787) rose by 3.43% to 14.8 Hong Kong dollars; ZHAOJIN MINING (01818) rose by 2.95% to 12.58 Hong Kong dollars; CHINAGOLDINTL (02099) rose by 1.15% to 43.9 Hong Kong dollars. On the news front, on January 21st, due to the uncertainty of Trump's policies, the US dollar and US Treasury bonds fell across the board, gold prices continued to strengthen, reaching a two-month high. Trump stated that he is considering imposing a 25% tariff on Mexico and Canada, "I think we will do this on February 1st." Stimulated by these remarks, market risk aversion quickly rose, and gold surged. Relevant analysis points out that the main reasons for the rise in gold include the decrease in US CPI data, increase in M2 money supply, uncertainty of Trump's policies, expectations of a Fed rate cut, technical support, and global economic uncertainty. Huayuan Securities issued a research report stating that the pullback in gold prices in November 2024 was mainly due to the resolution of the US presidential election, expectations, and short-term economic data catalyzing the market. The current gold price may have partially or fully reflected the corresponding marginal changes, and the bottom range has appeared. The logic of gold price rising remains unchanged, with the dual themes of "rate cut trade" and "Trump 2.0" expected to continue to catalyze. On the other hand, in the context of protectionism and great power competition, central bank gold accumulation forms a strong bottom support for gold prices. In the short term, the disturbance caused by the 25-year Fed rate cut expectations and the inflation expectations driven by Trump's imposition of tariffs after taking office may dominate the short-term trend of gold prices. In the long term, with the dual easing of US monetary and fiscal policies, the backdrop of credit tightening and de-dollarization of the US dollar, it is expected that gold still has upward space in the medium and long term.