HK Stock Market Move | Gold stocks lead the decline, with little hope for a Fed rate cut this year, and Goldman Sachs significantly lowering its gold price target.

Gold stocks lead the decline. As of the time of writing, Lingbao Gold (03330) fell by 7.03% to 13.76 Hong Kong dollars; Chifeng Jilong Gold Mining (06693) fell by 5.96% to 25.86 Hong Kong dollars; Shandong Gold Mining (01787) fell by 5.31% to 20.32 Hong Kong dollars; Zijin Mining Group (02899) fell by 4.36% to 30.68 Hong Kong dollars. On the news front, tensions in the Middle East have boosted energy prices, strengthening market expectations of tightening monetary policy. Goldman Sachs has lowered its year-end gold price forecast for 2026 by $500 per ounce, as the Federal Reserve is not expected to cut interest rates again this year. The bank analysts have lowered their December gold target price to $4900 per ounce. This means that gold prices are still expected to rise in the second half of this year, but the increase will be smaller than previously expected. Guosen's macro team also stated that due to easing tensions between the US and Iran and a retreat in the US dollar, there has been a technical rebound. However, the foundation of this rebound is not strong as a significant amount of trapped positions have accumulated above $4450-4500 per ounce, making a one-sided sharp rise unlikely. In the medium to long term, the expectations of rate hikes triggered by oil prices and the capital inflow into AI fields have not undermined the macro narrative for gold's rise, with factors such as global debt crisis, de-dollarization trend, central bank strategic gold purchases, and normalization of geopolitical risks supporting gold prices.