HK Stock Market Move | ZHAOJIN MINING (01818) rose more than 7% in early trading. Dovish remarks from the Federal Reserve eased expectations of tightening. Institutions say gold may have been overpriced due to rate hikes.

ZHAOJIN MINING (01818) rose more than 7% in early trading, up 7.02% to 17.54 Hong Kong dollars as of the time of publication, with a turnover of 172 million Hong Kong dollars. On the news front, Federal Reserve Chairman Kevin Walsh stated that inflation expectations had eased in the past month and reiterated that maintaining price stability remains a core policy goal. This statement overall leaned towards neutral to mildly dovish, interpreted by the market as limited likelihood of a rate hike in the short term, weakening bets on further tightening of the tightening path. It is widely believed that the Fed is not currently signaling a rate hike in the short term, reducing upward pressure on real interest rates, indirectly supporting gold. China International Capital Corporation pointed out that looking ahead to the second half of the year, the expected revision of the three narrative challenges may bring opportunities for the restoration of gold investment demand and market prices, as the market has already fully priced in expectations of rate hikes, which could lead to unwinding pressure. After clearing out over-allocated positions, the hedge value may return; Central banks in the Gulf region are expected to buy back gold, and the medium to long-term support for gold purchases by global central banks continues. The bank pointed out that gold may currently be overpriced due to rate hike expectations.