Understanding the Market | Gold stocks collectively decline, TONGGUAN GOLD falls nearly 4%, CHIFENG GOLD drops over 3%
Gold stocks collectively fell in the morning session. As of the time of writing, TONGGUAN GOLD dropped 3.8% to HKD 2.28; CHIFENG GOLD fell 3.59% to HKD 32.22; LINGBAO GOLD decreased by 2.68% to HKD 16.71; SD GOLD declined 2.09% to HKD 34.7. On the news front, the U.S. non-farm payroll revision data released last night was below expectations, confirming the weakening of the U.S. labor market and further increasing market expectations for the Federal Reserve's subsequent easing policies. Overnight, spot gold plunged after breaking new highs, currently hovering around USD 3,620 per ounce. Huatai Futures believes that the 12-month employment data in the U.S. up to March this year may be significantly revised downwards, exposing the risk of stagflation in the U.S. economy and driving up the safe-haven premium for gold. However, attention should be paid to profit-taking at high gold prices; it is expected that gold prices may mainly exhibit a strong oscillating pattern in the near term
According to Zhitong Finance APP, gold stocks collectively fell in early trading. As of the time of publication, TONGGUAN GOLD (00340) dropped 3.8% to HKD 2.28; CHIFENG GOLD (06693) fell 3.59% to HKD 32.22; LINGBAO GOLD (03330) decreased 2.68% to HKD 16.71; and SD GOLD (01787) declined 2.09% to HKD 34.7.
In terms of news, the U.S. non-farm payroll revision data released last night was below expectations, confirming the weakening of the U.S. labor market and further increasing market expectations for the Federal Reserve's subsequent easing policies. Overnight, spot gold plunged after breaking new highs and is currently hovering around USD 3,620 per ounce. Huatai Futures believes that the 12-month employment data in the U.S. up to March this year may be significantly revised downwards, exposing the risk of stagflation in the U.S. economy and pushing up the safe-haven premium for gold. However, attention should be paid to profit-taking at high gold prices; it is expected that gold prices will mainly show a strong oscillating pattern in the near term
