HK Stock Market Move | Gold stocks rose across the board in the morning trading session, as the sudden escalation of tensions in the Middle East triggered a pulse-like increase in market risk aversion sentiment, causing gold prices to fluctuate and rise.

Gold stocks rose in the early trading session. As of the time of writing, Chifeng Jilong Gold Mining (06693) was up 3.98% at HK$41.24; Shandong Gold Mining (01787) rose 2.13% to HK$42.1; ZHAOJIN MINING (01818) increased by 1.57% to HK$35.04; CHINAGOLDINTL (02099) went up by 1.27% to HK$207.6; Zijin Mining Group (02899) rose 0.8% to HK$45.36. On the news front, following the large-scale military strikes by the United States and Israel against Iran on February 28, Iran quickly launched a comprehensive response. Iran is now in a state of wartime emergency. Regarding the impact of the US and Israeli airstrikes on Iran on the price of gold, analysts at Oriental Gold Trust stated that the military conflict directly triggered a surge in market risk aversion sentiment, driving gold prices to fluctuate upwards. The short-term trend of gold prices will highly depend on the intensity of Iran's retaliation and the scope of conflict escalation, and short-term gold prices will maintain a high volatility trend. As of March 2, COMEX gold prices once reached $5400 per ounce. Changjiang pointed out that as the situation in the Middle East deteriorated suddenly, risk aversion sentiment rose. In late February, Israel's preventive strike against Tehran broke the fragile balance of the market. Despite reports of progress in US-Iran nuclear talks in Geneva, the escalation of actual military actions directly led to the "flight to safety" at the end of the month. Huayuan Securities believes that in the medium term, the dual themes of "Trump 2.0" and "rate cut trade" will continue to provide strong momentum for the rise in gold prices. The US-Iran war + closure of the Hormuz Strait will strengthen gold's safe-haven and anti-inflation properties, and recommend paying attention to phased allocation opportunities.