HK Stock Market Move | Gold stocks surged again as the U.S. Treasury expanded long-term bond repurchases, with the U.S. dollar's decline driving international gold prices sharply higher.

Gold stocks are once again rising. As of the time of writing, ZIJIN GOLD INTL (02259) is up 13.35%, trading at HKD 151; LINGBAO GOLD (03330) is up 9.8%, trading at HKD 24.26; Shandong Gold Mining (01787) is up 9.38%, trading at HKD 26.12; and ZHAOJIN MINING (01818) is up 8.4%, trading at HKD 25.8. On the news front, on August 19, Eastern Time, international gold prices broke through USD 4,500 per ounce. The U.S. Treasury Department announced that it would expand the repurchase program for longer-term government bonds, increasing the "liquidity support repurchase operations for 10-year to 30-year bonds at least twice." Following this news, the yield on U.S. 30-year Treasuries fell sharply, and the U.S. dollar index also decreased, providing significant price support for the non-interest-bearing asset, gold. Notably, data released by the U.S. Treasury on August 19 showed that the total federal government debt has exceeded USD 40 trillion. The surge in U.S. debt is prompting central banks around the world to diversify their reserve assets, gradually becoming significant buyers in the gold market. The ongoing increase in gold allocations by central banks may help provide long-term support for gold prices and stabilize long-term pricing centers, highlighting the strategic allocation value of gold in the long term.