HK Stock Market Move | Gold stocks continue to weaken, with spot gold falling below $3980. Institutions predict that there will be consolidation and volatility before the end of the year.

Gold stocks continued to weaken as of the time of writing, with LINGBAO GOLD (03330) falling 4.27% to 15.9 Hong Kong dollars; PERSISTENCE RES (02489) falling 3.55% to 1.36 Hong Kong dollars; CHI SILVER GP (00815) falling 3.23% to 0.6 Hong Kong dollars; and CHINAGOLDINTL (02099) falling 2.65% to 125 Hong Kong dollars. On the news front, on November 4th, spot gold fell below $3980 per ounce, dropping 0.53% intraday. It has fallen more than 9% from its high point on October 20th. GF SEC believes that the main reason for this deep correction in gold is that implied volatility is high, and profit-taking after a sharp increase may weaken the trend of fund inflows; the market has already priced in too much instability in geopolitics, but there have been recent easing trends in US-China relations and the Russia-Ukraine conflict. GF SEC points out that the short-term position of gold is still not low, with high volatility, and geopolitical risks are marginally declining. Without unexpected positive factors, it is expected that London gold will consolidate and fluctuate before the end of the year, and then reach new highs in the first quarter of next year. Gold will continue to rise in the future if two necessary conditions are met: (1) implied volatility falls to the level of August to September; (2) new driving factors emerge at the macro level.