HK Stock Market Move | All gold stocks rose across the board. The optimistic expectations for U.S.-Iran negotiations led to a sharp decline in oil prices, while the weakening dollar and U.S. Treasury bonds supported the precious metals market.

Gold stocks rose across the board. As of the time of this report, CHINAGOLDINTL (02099) was up 8.54% at HKD 197.1; LINGBAO GOLD (03330) was up 7.59% at HKD 20.98; Chifeng Jilong Gold Mining (06693) was up 5.58% at HKD 34.84; Shandong Gold Mining (01787) was up 5.43% at HKD 20.98; ZIJIN GOLD INTL (02259) was up 4.95% at HKD 122.9. In terms of news, due to easing tensions between the US and Iran, international oil prices significantly fell on Tuesday, and US Treasury yields continued to decline. On August 4, US Treasury Secretary Yellen mentioned that the US might reach an agreement with Iran on August 5 to open the Strait of Hormuz. Qatar indicated that all parties are working to ease tensions in the Middle East and have drafted a statement for a potential agreement, though it emphasized that a US-Iran agreement has not yet been reached. Additionally, the US and Japan intervened in the yen's exchange rate for the first time in 30 years, resulting in a noticeable strengthening of the yen against the dollar, and the temporary weakening of the dollar index also supported the precious metals market. CITIC SEC believes that the current pullback in gold prices has approached historical extremes, and around USD 4,000 per ounce is likely the bottom of this round. Looking ahead, it is anticipated that the situation in the Strait of Hormuz will shift from repressing gold prices to boosting them, and that the Federal Reserves monetary policy may be more optimistic than the market expects. Coupled with soaring US military spending raising the deficit, it is expected that gold prices will return to an upward trajectory within the year.