Understanding the Market | Gold stocks collectively decline as the Federal Reserve remains inactive; Citigroup predicts gold prices will fall below $3,000
Gold stocks collectively declined. As of the time of publication, LINGBAO GOLD fell 4.21% to HKD 10.46; EVEREST GOLD fell 3.57% to HKD 1.89; CHINAGOLDINTL fell 2.21% to HKD 70.85; CHIFENG GOLD fell 1.73% to HKD 29.85. On the news front, the Federal Reserve maintained interest rates for the fourth consecutive time in June, with the dot plot indicating two rate cuts this year, but the number of officials expecting no rate cuts this year rose to seven, and the expectation for rate cuts next year was reduced to one. Following the announcement of the interest rate decision, gold prices declined, with New York gold falling below USD 3,400. Additionally, geopolitical factors remain relatively complex and volatile. Citibank stated that the record surge in gold is about to end, predicting that gold prices will fall below USD 3,000 per ounce in the coming quarters. The bank believes that gold, as a highlight among commodities, will struggle to maintain its strong performance
According to Zhitong Finance APP, gold stocks collectively fell. As of the time of publication, Lingbao Gold (03330) dropped 4.21% to HKD 10.46; Everest Gold (01815) fell 3.57% to HKD 1.89; China Gold International (02099) decreased 2.21% to HKD 70.85; and CHIFENG GOLD (06693) declined 1.73% to HKD 29.85.
In terms of news, the Federal Reserve maintained interest rates for the fourth consecutive time in June, with the dot plot indicating two rate cuts this year. However, the number of officials expecting no rate cuts this year rose to seven, and the expectation for a rate cut next year was reduced to one. Following the interest rate decision announcement, gold prices declined, with New York gold falling below USD 3,400. Additionally, geopolitical factors remain relatively complex and variable. Citibank stated that the record rise in gold prices is about to end, predicting that gold prices will fall below USD 3,000 per ounce in the coming quarters. The bank believes that gold, as a highlight among commodities, will struggle to maintain its strong performance
