Market Insight | Gold stocks generally rise, market still betting on US rate cut in September, Middle East tensions escalate triggering safe-haven sentiment
Gold stocks are generally rising. As of the time of publication, Zijin Mining rose by 3.02% to HKD 15.7, China Gold International rose by 1.66% to HKD 42.95, Lingbao Gold rose by 1.55% to HKD 3.27, and Zhaojin Mining rose by 0.91% to HKD 13.3. On the news front, the U.S. GDP in the second quarter recorded 2.8%, higher than the expected 2%, with interest rate futures continuing to price in bets on the Fed starting to cut rates in September, expecting rate cuts at every meeting for the remainder of 2024. In addition, the June PCE price index recorded 2.9%, higher than the expected 2.7%, but significantly slower than the previous value of 3.7%. Furthermore, tensions in Lebanon escalated further, leading to an increase in the safe-haven demand for gold. On July 27th local time, Israel stated that Hezbollah militants in Lebanon fired rockets at the Golan Heights controlled by Israel, hitting a football field and causing 12 deaths. Hezbollah in Lebanon denied any involvement in the attack, but the Israeli Prime Minister threatened to make Hezbollah "pay an unprecedented price"
According to the Wisdom Finance app, gold stocks are generally rising. As of the time of publication, Zijin Mining (02899) rose by 3.02% to HKD 15.7; China Gold International (02099) rose by 1.66% to HKD 42.95; Lingbao Gold (03330) rose by 1.55% to HKD 3.27; Zhaojin Mining (01818) rose by 0.91% to HKD 13.3.
On the news front, the US GDP for the second quarter recorded 2.8%, higher than the expected 2%. Interest rate futures continue to price in bets on the Fed starting to cut rates in September, with expectations of rate cuts at every meeting remaining in 2024. In addition, the June PCE price index recorded 2.9%, higher than the expected 2.7%, but significantly slower than the previous value of 3.7%.
Furthermore, the tension in Lebanon and Israel has escalated further, leading to an increase in the safe-haven demand for gold. On July 27th local time, Israel stated that Hezbollah militants in Lebanon fired rockets at the Golan Heights controlled by Israel, hitting a football field and causing 12 deaths. Hezbollah in Lebanon denied any involvement in the attack, but the Israeli Prime Minister threatened to make Hezbollah "pay an unprecedented price"