HK Stock Market Move | Gold stocks lead the decline, inflation concerns prompt global central banks to tilt hawkish, and gold faces renewed pressure from holding costs.

Gold stocks lead the decline, as of press time, LINGBAO GOLD (03330) fell by 8.21% to 16.1 Hong Kong dollars; Chifeng Jilong Gold Mining (06693) fell by 5.9% to 30.92 Hong Kong dollars; Shandong Gold Mining (01787) fell by 5.64% to 23.74 Hong Kong dollars; ZIJIN GOLD INTL (02259) fell by 4.92% to 129.6 Hong Kong dollars. On the news front, the US-Iran negotiations deadlocked, intensifying concerns about inflation, and expectations of a US Federal Reserve interest rate hike dampened gold prices, leading to a downward fluctuation in international spot gold prices; in addition, India recently raised import tariffs on gold and silver to 15%, putting pressure on physical demand. It is reported that UBS has lowered its gold price expectations in its latest gold report, expecting gold prices to be $5500 per ounce by the end of 2026 and the first half of 2027, down by 200 to 400 dollars from previous forecasts. The report points out that the high oil prices caused by the Middle East conflict are driving up inflation expectations, prompting global central banks to maintain a hawkish stance, with US Treasury yields and the US dollar strengthening simultaneously, putting pressure on gold due to "holding cost." In addition, UBS has significantly lowered its silver price forecasts and expectations for supply shortages in 2026.