HK Stock Market Move | Gold stock declines at the forefront as Lingbao Gold (03330) drops by 6%. The situation between the US and Iran faces another setback as concerns about inflation persist.

Gold stocks are leading the decline. As of the time of writing, Lingbao Gold (03330) is down 6% to HK$17.39; Chifeng Jilong Gold Mining (06693) is down 5.1% to HK$33.1; Zijin Mining Group (02899) is down 3.61% to HK$34.08; ZIJIN GOLD INTL (02259) is down 2.74% to HK$135. In terms of news, on May 27, spot gold fluctuated lower, breaking below $4500 as of the time of writing, falling by 0.29% intraday. The ongoing twists and turns in the US-Iran situation have raised concerns about inflation. Reports of new military activities in southern Iran and Israeli actions against Hezbollah have heightened market worries about the possibility of conflict escalations. In addition, former New York Fed President Dudley warned on Tuesday that the reasons for cutting interest rates are "very weak," and neutral rates may be higher than the Fed assumes. CITIC Futures believes that looking ahead, short-term gold will remain in a range-bound pattern, with caution needed for bulls and vigilance against the risk of geopolitical tensions escalating again. Focus will be on substantive progress in US-Iran negotiations and the April PCE and durable goods order data to be released this week. In the medium to long term, the core logic for gold's rise remains intact.