HK Stock Market Move | Rising oil prices have sparked concerns about inflation. TONGGUAN GOLD (00340) fell nearly 4% and CHI SILVER GP (00815) fell over 3%.

Gold stocks collectively weakened, as of the time of writing, TONGGUAN GOLD (00340) fell by 3.81% to 2.78 Hong Kong dollars; CHI SILVER GP (00815) fell by 3.53% to 0.41 Hong Kong dollars; Shandong Gold Mining (01787) fell by 2.55% to 27.54 Hong Kong dollars; ZIJIN GOLD INTL (02259) fell by 2.5% to 147.9 Hong Kong dollars. On the news front, the escalating tension in the Middle East, surging oil prices, and a stronger US dollar prompted a sharp drop in gold prices on the 4th day, with the June gold futures price on the New York Commodities Exchange falling below $4,600 per ounce. However, Huayuan Securities believes that the compression of market expectations for a rapid interest rate cut by the Federal Reserve due to the rise in inflation expectations from the surge in oil prices is ongoing; at the same time, the weakening of growth expectations and the increasing probability of a US economic recession are continuously strengthening the value of gold as a safe-haven asset and a hedge against policy. The bank believes that gold currently does not solely depend on the single premise of "immediate interest rate cuts by the Federal Reserve", but has secured more stable medium-term support in an environment where "high inflation stickiness" and "pressure for growth downgrades" coexist.