HK Stock Market Move | Gold stocks fluctuate higher; spot gold returns above $4,300 as market closely awaits Fed rate decision.

Gold stocks fluctuated higher. As of press time, LINGBAO GOLD(03330) rose 5.55% to HK$23.96; Chifeng Jilong Gold Mining(06693) rose 4.48% to HK$38.22; Shandong Gold Mining(01787) rose 3.85% to HK$24.26; ZIJIN GOLD INTL(02259) rose 3.4% to HK$161.1. On the news front, spot gold rallied back above $4,300 this morning. The Fed's interest rate decision is about to be announced, and the U.S. Treasury sell-off has further intensified. The CME FedWatch Tool shows that traders believe the probability of a 25 basis point rate hike in September is over 90%, with the market nearly fully pricing in a September Fed rate hike. Some analysts say that if the Fed raises rates by 25 basis points as expected, gold may see a mild "selling on the news" rebound as long-standing uncertainty is removed; but if the Fed unexpectedly keeps rates unchanged, gold prices could rise significantly. Everbright Futures stated that from the performance of gold prices, there are signs of stabilization, but the market is worried that Warsh's hawkish remarks may exceed expectations, so the rebound remains relatively cautious, with the market waiting for the interest rate decision to be announced in the early hours of tomorrow. In addition, the continued rise in long-term U.S. Treasury yields has brought some risk-averse sentiment, and the Fed is also caught in a policy dilemma of "needing to raise rates to fight inflation, but rate hikes exacerbate recession" this is precisely the opportunity for gold to sustain its rebound.