Understanding the Market | Gold stocks collectively decline as Powell reiterates "not in a hurry to cut interest rates" while the market focuses on U.S. inflation data
Gold stocks fell collectively, with LINGBAO GOLD down 3.65%, CHINAGOLDINTL down 2.9%, and SD GOLD down 2.36%. Gold prices retreated to USD 2,887 per ounce, and Federal Reserve Chairman Jerome Powell reiterated that there is "no rush to cut interest rates," with the market focusing on U.S. inflation data. Huatai Securities pointed out that although gold may fluctuate in the short term, the structural driving factors for gold assets remain in the medium to long term, and gold is expected to maintain relative performance
According to Zhitong Finance APP, gold stocks collectively fell. As of the time of writing, Lingbao Gold (03330) dropped 3.65% to HKD 5.02; China Gold International (02099) fell 2.9% to HKD 46.95; Shandong Gold (01787) decreased by 2.36% to HKD 15.7; Zijin Mining (02899) declined 1.22% to HKD 16.18.
On the news front, gold prices have retreated after continuously reaching new highs. As of the time of writing, spot gold is quoted at USD 2887 per ounce. Previously, driven by safe-haven demand, spot gold briefly surpassed USD 2942 during trading on Tuesday. Federal Reserve Chairman Jerome Powell reiterated in a congressional hearing that there is "no rush to cut interest rates," emphasizing that the economy is strong and inflation is above target, which has suppressed market expectations for short-term rate cuts. The current market is focused on U.S. inflation data and sales data for January.
Huatai Securities pointed out that although gold may face fluctuations after a strong appreciation driven by multiple short-term factors, the turning point for the appreciation trend of gold is far from over. As the short squeeze in gold comes to an end, short-term gold prices may face volatility. However, in the medium to long term, the structural factors driving the relative performance of gold assets have not only not dissipated but have also strengthened with increasing concerns about the sustainability of U.S. fiscal policy and economic and trade risks. Therefore, gold is expected to maintain relative performance for a considerable period in the future