HK Stock Market Move | Gold stocks collectively decline as Middle East tensions escalate and oil prices remain high; inflation risks and rate hike expectations continue to weigh on gold prices.

Gold stocks collectively declined. As of press time, ZIJIN GOLD INTL (02259) fell 4.65% to HK$127; Chifeng Jilong Gold Mining (06693) fell 3.55% to HK$31.54; Shandong Gold Mining (01787) fell 3.2% to HK$17.83. On the news front, tensions in the Middle East are currently escalating, with Brent crude oil at a high of $110. According to CCTV News, citing U.S. officials and other informed sources, the U.S. and Israeli militaries have formulated specific plans to launch another military strike on Iran after the U.S. midterm elections. In addition, the U.S. State Department confirmed it has ordered the departure of non-emergency U.S. government employees and their family members from Saudi Arabia. CITIC Futures believes that gold will remain range-bound in the short term. The slight pullback in the dollar and U.S. Treasury yields has marginally eased the downward pressure on gold, but energy inflation risks and market bets on further rate hikes by the U.S., Europe, and Japan have not yet clearly faded, so the room for a gold price rebound remains limited. In the long term, U.S. fiscal credit risks, central bank gold purchases, and gold allocation demand will still provide support for gold.