HK Stock Market Move | Gold stocks continue to be under pressure, with rising US bond yields suppressing precious metals. The geopolitical situation still remains uncertain.

Gold stocks continue to be under pressure. As of the time of writing, LINGBAO GOLD (03330) fell by 4.94% to HK$18.85; CHINAGOLDINTL (02099) fell by 4.14% to HK$155.1; Zijin Mining Group (02899) fell by 3.98% to HK$33.76; Chifeng Jilong Gold Mining (06693) fell by 3.88% to HK$36.18; ZIJIN GOLD INTL (02259) fell by 2.48% to HK$149.2. On the news front, the overall precious metals sector saw a significant pullback due to the simultaneous rise in US bond yields and the US dollar index. In the early morning of May 18th, spot gold fell below $4500 per ounce, the first time since the end of March. As of the time of writing, the US 10-year Treasury yield has risen to 4.627%, the highest level since February 2025; the US 30-year Treasury yield has risen to 5.154%. Currently, the market is pricing in the possibility of a Fed rate hike. Data from the London Stock Exchange Group shows that the US money market currently expects a 64% probability of a 25 basis points rate hike by the end of the year, and fully prices in one rate hike by March 2027. It is worth noting that there is short-term uncertainty in the geopolitical situation. US President Trump threatened on the 17th that if Iran does not act quickly, they will "have nothing". As of the time of writing, Brent crude oil prices have broken through $110 per barrel. Guotou Futures believes that in the short term, the US-Iran negotiations are at a standstill, with both sides seeking a way out but still pursuing a tougher stance to gain more leverage. When the Strait of Hormuz will be open becomes a core issue in the global commodity market, with market sentiment swaying with war-related news, and gold prices currently lacking a clear directional guidance.