Understanding the Market | Gold Stocks Open Higher Across the Board as Fed's Short-Term Rate Hike Probability Cools, Gold Market Welcomes Rebound Opportunity
Gold stocks opened higher across the board. As of the time of writing, ZHAOJIN MINING rose 7.53% to HKD 18.7; LINGBAO GOLD rose 6.85% to HKD 14.5; ZIJIN GOLD INTL rose 6.04% to HKD 100; SD-GOLD rose 4.97% to HKD 18.6. On the news front, on the evening of July 2, the U.S. Bureau of Labor Statistics released data showing that non-farm employment increased by 57,000 in June. The job market was weaker than expected, and traders fully digested the expectation of a Federal Reserve rate hike in December, which was previously anticipated for October. Additionally, Waller stated at the European Central Bank forum on Wednesday that inflation risks have decreased, which also lowered expectations for rate hikes this year. CICC Futures indicated that the current situation facing the Federal Reserve is one of non-overheating employment and moderating inflation expectations, meaning the probability of rate hikes throughout the summer has suddenly cooled, providing a rebound opportunity for the gold market. The co-head of Goldman Sachs Global Commodities Research indicated that the decline in international gold prices over the past four months does not mean that the upward trend for the year has ended, as global central bank demand will continue to drive precious metal prices back up to nearly USD 5,000 per ounce
According to Zhitong Finance APP, gold stocks opened higher across the board. As of the time of publication, ZHAOJIN MINING (01818) rose by 7.53% to HKD 18.7; LINGBAO GOLD (03330) increased by 6.85% to HKD 14.5; ZIJIN GOLD INTL (02259) climbed by 6.04% to HKD 100; and SD-GOLD (01787) went up by 4.97% to HKD 18.6.
On the news front, on the evening of July 2, the U.S. Bureau of Labor Statistics released data showing that non-farm employment increased by 57,000 in June. The job market was weaker than expected, and traders fully digested the expectation of a Federal Reserve rate hike in December, which was previously anticipated for October. Additionally, Waller stated at the European Central Bank forum on Wednesday that inflation risks have decreased, which also lowered speculation about rate hikes for the year.
CICC Futures indicated that the current situation facing the Federal Reserve is one of non-overheating employment and moderate inflation expectations, which means the probability of rate hikes throughout the summer has suddenly cooled, providing an opportunity for a rebound in the gold market. The co-head of Goldman Sachs' global commodities research indicated that the decline in international gold prices over the past four months does not mean that the upward trend for the year has ended, as global central bank demand will continue to drive precious metal prices back up to nearly USD 5,000 per ounce
