Understanding the Market | Gold stocks collectively decline, with Chifeng Gold dropping over 4%, as strong U.S. non-farm payrolls hit interest rate cut expectations
Gold stocks collectively declined. As of the time of publication, CHIFENG GOLD fell by 4.64%, trading at HKD 25.7; TONGGUAN GOLD dropped by 4.13%, trading at HKD 2.09; CHINAGOLDINTL decreased by 3.28%, trading at HKD 70.75; and SD GOLD fell by 2.45%, trading at HKD 27.9. In terms of news, the U.S. added 147,000 non-farm jobs in June after adjustment, better than expected, and the unemployment rate unexpectedly dropped to 4.1%. Traders are no longer betting on a rate cut by the Federal Reserve in July, and the probability of a rate cut in September has also decreased. Following the data release, the U.S. dollar index surged, while gold prices fell sharply before rebounding slightly. A recent research report from CITIC Construction Investment pointed out that under the judgment of trade easing and recovery trading in the second half of the year, the short-term bullish factors for gold are not significant. If combined with events such as a strong global stock market and easing of the Russia-Ukraine conflict, risk appetite may rebound, and a significant pullback in gold prices at historical highs cannot be ruled out
According to Zhitong Finance APP, gold stocks collectively fell. As of the time of publication, Chifeng Gold (06693) dropped 4.64% to HKD 25.7; Tongguan Gold (00340) fell 4.13% to HKD 2.09; CHINAGOLDINTL (02099) decreased 3.28% to HKD 70.75; SD GOLD (01787) declined 2.45% to HKD 27.9.
In terms of news, the U.S. non-farm payrolls increased by 147,000 in June after adjustment, better than expected, and the unemployment rate unexpectedly dropped to 4.1%. Traders are no longer betting on a rate cut by the Federal Reserve in July, and the probability of a rate cut in September has also decreased. After the data was released, the U.S. dollar index surged, and gold prices fell sharply before rebounding slightly. A recent research report from CITIC Securities pointed out that under the judgment of trade easing and recovery trading in the second half of the year, the short-term bullish outlook for gold is not significant. If combined with events such as a strong global stock market and easing of the Russia-Ukraine conflict, risk appetite may rebound, and a significant pullback in gold prices at historical highs cannot be ruled out
