HK Stock Market Move | Gold stocks continue to decline as interest rates rise, pushing up the cost of holding gold. Wall Street investment banks collectively lower their gold price forecasts.

Gold stocks continue to decline. As of the time of writing, Shandong Gold Mining (01787) fell by 4.83% to 18.7 Hong Kong dollars; Zijin Gold International (02259) fell by 5.17% to 94.4 Hong Kong dollars; Chifeng Jilong Gold Mining (06693) fell by 3.76% to 24.04 Hong Kong dollars; Chinagoldintl (02099) fell by 2.6% to 127.3 Hong Kong dollars. On the news front, Wall Street investment banks collectively lowered their gold price expectations: Goldman Sachs lowered its year-end target to $4900, while Deutsche Bank sees a worst-case scenario price of $3800. At the same time, interest rate hike expectations have increased significantly, with Bank of America predicting three rate hikes this year, and Goldman Sachs expecting no rate cuts before 2027. The link between gold and energy prices has weakened, with real interest rates being a key factor. Rising U.S. Treasury yields have increased the cost of holding gold, putting pressure on gold ETFs. Orient believes that gold prices may remain volatile until concerns about interest rate hikes ease. In the medium to long term, risks in the U.S. federal government debt and challenges to the dollar's status could provide opportunities for gold under the restructuring of the global currency system. Guoyuan International, on the other hand, believes that the core focus of the Hong Kong gold stock sector has shifted from geopolitical risk premiums to "sustained gold price bounce + falling U.S. Treasury yields + company profit realization capability."