HK Stock Market Move | Gold stocks fell further in the afternoon, with CHINAGOLDINTL(02099) and Chifeng Jilong Gold Mining(06693) dropping nearly 4%.

Gold stocks fell further in the afternoon. As of the time of writing, CHINAGOLDINTL (02099) fell by 3.82% to 125.8 Hong Kong dollars; Chifeng Jilong Gold Mining (06693) fell by 3.74% to 28.34 Hong Kong dollars; Shandong Gold Mining (01787) fell by 3.7% to 33.3 Hong Kong dollars; Zijin Mining Group (02899) fell by 2.22% to 28.14 Hong Kong dollars. On the news front, on September 18th, spot gold fell below $3640 per ounce, dropping by 0.69% during the day. On Wednesday, September 17th, the Fed announced a 25 basis point rate cut to 4.00%-4.25%, the first rate cut since December 2024. Fed Chairman Powell later stated in a press conference that this was a risk management rate cut, and there wasn't much support within the FOMC for a 50 basis point cut. He believed that the balance of risks had shifted due to increased downward risks to employment. Therefore, we believe that the decision at this meeting to move closer to a "neutral" policy stance was appropriate. Huatai Futures stated that while the Fed's rate cut was implemented, Powell's comments revealed some hawkish signals, combined with profit-taking after the shoe dropped, may exert some short-term pressure on the price of gold. However, the logic of a loose monetary policy cycle remains unchanged, and the financial attributes of precious metals are expected to continue to be amplified. Soochow believes that although the logic of a long bull market in gold remains, there may be short-term risks of a pullback. The main concerns include: gold being at overbought levels, increased volatility; lack of consistency in the flow of funds into gold ETFs; limited spot demand; a decline in speculative net long positions in Comex gold; and the sentiment in the Chinese market not being "exuberant" enough.