HK Stock Market Move | Gold stocks led the decline, Federal Reserve leans hawkish and stays put, inflation pressures may shrink room for interest rate cuts.

Gold stocks lead the decline. As of the writing of this article, CHINAGOLDINTL (02099) has dropped by 7.2%, to 152 Hong Kong dollars; ZIJIN GOLD INTL (02259) has dropped by 6.36%, to 172.3 Hong Kong dollars; Lingbao Gold (03330) has dropped by 5.45%, to 26 Hong Kong dollars; Zijin Mining Group (02899) has dropped by 4.98%, to 35.48 Hong Kong dollars. On the news front, data released by the U.S. Bureau of Labor Statistics on the 18th show that the U.S. Producer Price Index (PPI) for February has exceeded expectations both monthly and year-on-year, indicating a resurgence of inflationary pressure in the U.S. Traders further reduced their bets on a Fed rate cut this year, causing the U.S. dollar index to rise slightly and putting pressure on the prices of precious metals such as gold and silver to decline. In addition, the Fed announced that it would maintain the federal funds rate range at 3.50% to 3.75%, in line with market expectations. According to the latest dot plot, the Fed's decision-making body expects to cut interest rates once this year and again in 2027, but the exact timing is still unclear. Against a backdrop of high oil prices, Powell continues to maintain a cautious hawkish stance, stating that stubborn U.S. inflation and rising uncertainties in the outlook would prevent rate cuts if inflation does not improve. He also mentioned that several Fed officials are inclined to reduce the number of future rate cuts.