Understanding the Market | Lingbao Gold Surges Over 10%, Leading Gold Stocks CPI Data Boosts Rate Cut Expectations, Weakening the US Dollar and Supporting Gold Prices
Gold stocks collectively rose. As of the time of publication, Lingbao Gold rose by 10.09% to HKD 3.49; Zhaojin Mining rose by 5.8% to HKD 14.6; China Gold International rose by 4.89% to HKD 53.6; Shandong Gold rose by 4.74% to HKD 19.44. On the news front, the seasonally adjusted annual rate of US CPI in April recorded 3.4%, lower than the previous value of 3.5%, in line with market expectations; April core CPI monthly rate fell as expected to 0.3%, hitting a new low since December last year. US retail sales in April remained flat month-on-month, lower than the market expectation of 0.4%, reinforcing traders' bets on the Fed cutting interest rates in September and December. With the increasing expectations of a Fed rate cut, the US dollar index fell by 0.64% on Wednesday, hitting a new low in nearly five weeks, and US Treasury yields also declined. The attractiveness of gold to investors strengthened, pushing gold prices to a near one-month high, with COMEX June gold futures rising by 1.48% to $2394.9 per ounce
According to the information from the Wise Finance APP, gold stocks collectively rose. As of the time of publication, Lingbao Gold (03330) rose by 10.09% to HKD 3.49; Zhaojin Mining (01818) rose by 5.8% to HKD 14.6; China Gold International (02099) rose by 4.89% to HKD 53.6; Shandong Gold (01787) rose by 4.74% to HKD 19.44.
On the news front, the seasonally adjusted CPI in the United States for April recorded an annual rate of 3.4%, lower than the previous value of 3.5%, in line with market expectations; the core CPI for April fell as expected to 0.3% month-on-month, hitting a new low since December last year. Retail sales in the United States for April remained flat month-on-month, lower than the market expectation of 0.4%, reinforcing traders' bets on the Fed cutting interest rates in September and December.
With the increasing expectation of a Fed rate cut, the US dollar index fell by 0.64% on Wednesday, hitting a new low in nearly five weeks, and US Treasury yields also declined. Gold's attractiveness to investors strengthened, with the price rising to a near one-month high, and the COMEX June gold futures rose by 1.48% to $2394.9 per ounce