HK Stock Market Move | Afternoon rise in gold stocks, Morgan Stanley predicts rate cuts will continue, gold is expected to continue to receive macroeconomic support.

Gold stocks rose in the afternoon, as of press time, Chifeng Jilong Gold Mining (06693) rose by 3.83% to 31.46 Hong Kong dollars; Shandong Gold Mining (01787) rose by 3.48% to 3.49 Hong Kong dollars; LINGBAO GOLD (03330) rose by 2.9% to 18.08 Hong Kong dollars; Zijin Mining Group (02899) rose by 2.73% to 33.94 Hong Kong dollars. On the news front, the December Federal Reserve interest rate meeting cut rates as expected by 25bp, but there was a significant difference of opinion within the Federal Reserve about the pace of future rate cuts. There were three dissenting votes in this rate decision, with Federal Reserve Board Member Milan believing that rates should be cut by 50bp, while two regional Federal Reserve Presidents advocated against a rate cut. The latest research report from Morgan Stanley indicates that rate cuts are expected to continue, and the US dollar index will weaken again. Morgan Stanley believes that gold is likely to continue to receive macro support, and gold prices may reach $4,800 per ounce by the fourth quarter of 2026. Huaxia Fund believes that looking ahead, the Federal Reserve is still in a period of rate cuts. If a dovish chairman is appointed, the pace of rate cuts by the Federal Reserve may be more aggressive, which could benefit gold. In addition to loose monetary policy, the US is also in a period of loose fiscal policy, with credit risks continuing due to the pressure of debt repayment on US bonds. Central banks around the world continue to buy gold to diversify their foreign exchange reserves. With the trend of both loose monetary and fiscal policies, the long-term value of gold allocation is still promising.