HK Stock Market Move | Gold stocks are generally under pressure as rising oil prices intensify concerns over inflation. The Federal Reserve's hawkish stance sends a strong signal.

Gold stocks are generally under pressure. As of the time of writing, CHINAGOLDINTL (02099) has dropped by 3.21%, trading at HKD 205.2; Zijin Mining Group (02899) is down 3.14%, at HKD 36.38; LINGBAO GOLD (03330) has decreased by 2.8%, reaching HKD 23.6; and Chifeng Jilong Gold Mining (06693) has fallen by 2.14%, now at HKD 38.44. In terms of news, on Monday, oil prices for both West Texas Intermediate and Brent Continued to rise on the U.S. trading market, supported by the uncertainty surrounding the reopening of the Strait of Hormuz and the ongoing tensions in the Middle East. This has intensified market concerns over the upward inflation risks in the U.S., causing a rise in expectations for rate hikes from the Federal Reserve. Meanwhile, Cleveland Fed President Loretta Mester indicated that the Federal Reserve may need to raise interest rates multiple times to bring the inflation rate down to the central bank's target level of 2%. Gold prices have risen for three consecutive trading days, with spot gold currently above $4,400. Huatai Futures holds that precious metals are currently responding rather moderately to changes in the oil price level, with multiple instances of gold prices rising alongside oil prices. Unless there are clear signs of heightened geopolitical tensions or substantial breakdowns in negotiations, precious metals may continue to maintain high-level fluctuations as rate hike expectations wane. Thus, gold prices are expected to consolidate with a generally strong bias in the near term.