HK Stock Market Move | Gold stocks fell further in the afternoon, while precious metals across the board took a dive in trading. UBS warns of a potential short-term correction in gold.

Gold stocks fell further in the afternoon. As of the time of writing, Chifeng Jilong Gold Mining (06693) fell by 5.54% to HK$29.32; Shandong Gold Mining (01787) fell by 3.69% to HK$36.5; CHINAGOLDINTL (02099) fell by 2.94% to HK$158.4; ZIJIN GOLD INTL (02259) fell by 2.14% to HK$146.3. In terms of news, precious metals plunged across the board on Wednesday, with spot silver falling by over 3%; spot gold falling by over 1%; spot palladium falling by over 5%, and spot platinum falling by over 8%. A recent report by UBS stated that the rise in gold prices lacks credibility, and that the current market trend in December is not driven by independent positive factors in gold, but is simply "riding on the coattails of the surge in silver, platinum, and palladium". The model shows that the relationship between gold and real interest rates has broken down, and in the absence of new stimulating news, the residual significantly accelerates, which is usually a precursor to a pullback. It is worth noting that starting this Thursday, Bloomberg Commodity Index will begin to adjust the weightings of various commodities. Changjiang has stated that, given the significant rise in precious metals previously, passive tracking funds may sell some contracts to match the new weightings. The trend of increasing allocations remains unchanged.