HK Stock Market Move | Gold stocks rose collectively as expectations for a Federal Reserve interest rate hike receded and central bank gold purchases continued. Deutsche Bank raised its forecast for gold prices to $5,100.

Gold stocks rose collectively; as of the time of writing, ZIJIN GOLD INTL (02259) rose 5.41% to HKD 134.4; ZHAOJIN MINING (01818) increased by 4.41% to HKD 23.68; Shandong Gold Mining (01787) was up 4.39% at HKD 22.34; LINGBAO GOLD (03330) climbed 4.2% to HKD 22.32; and CHINAGOLDINTL (02099) rose 3.36% to HKD 221.8. In terms of news, spot gold fluctuated and rose today, returning to above USD 4400. Last week, the U.S. CPI and PPI inflation data were released one after another, with marginal easing in inflationary pressure. Combined with the unexpected drop in U.S. retail sales in July and falling oil prices, market expectations for another interest rate hike by the Federal Reserve have significantly retreated. Meanwhile, the trend of global central banks buying gold continues, with a staggering 62% year-on-year increase in net gold purchases by global central banks in the second quarter, setting a historical record for the highest net purchases in any second quarter. Deutsche Bank's research report indicated that the fifth round of "explosive" price increases for gold that began in 2024 is still ongoing. The dual inelastic demand support from central bank gold purchases and ETF inflows sets an end-of-year price target range of USD 4700-5100 per ounce. Additionally, ZIJIN GOLD INTL's latest interim report shows that in the first half of this year, ZIJIN GOLD INTL's mined gold production was approximately 27.3 tons, a year-on-year increase of 44%; revenue was approximately USD 3.987 billion, a year-on-year increase of 100%; and the profit attributable to the equity holders of the parent company was approximately USD 1.451 billion, a substantial year-on-year increase of 179%.