Understanding the Market | Gold stocks collectively fell back as the US July CPI met expectations but lacked clear direction, with spot gold briefly dropping below $4,400

Zhitong
2026.08.13 04:12

Gold stocks collectively fell. As of the time of publication, Lingbao Gold (03330) dropped 6.78%, trading at HKD 21.16; China Gold International (02099) fell 5.92%, trading at HKD 190.8; Shandong Gold (01787) decreased by 4.25%, trading at HKD 22.06. On the news front, the U.S. July CPI decreased from 3.5% to 3.4%, and the core CPI fell from 2.6% to 2.5%, both in line with market expectations. The moderate inflation data did not present any significant surprises, alleviating the pressure on the Federal Reserve to accelerate interest rate hikes. However, the lack of clear directional data has led to a tug-of-war in the gold market. Following the data release, gold prices initially fell before rising, and this morning briefly fell below the USD 4,400 mark. Gold prices have accumulated an increase of about 8% this month, with last week recording the best weekly performance since January. Liu Yu, chief economist at Industrial Securities, stated that the current rise in gold prices is mainly driven by the cooling of interest rate hike expectations after the unexpected negative non-farm data, with trading funds amplifying the increase. The SPDR Gold ETF holdings increased by 3.4 tons on August 10, with a cumulative increase of nearly 14 tons since August, while there was a continuous net outflow from March to July. The low positions combined with implied volatility remaining around the low level of 25 also make short-term fluctuations easier to amplify

According to Zhitong Finance APP, gold stocks collectively fell. As of the time of publication, Lingbao Gold (03330) dropped 6.78% to HKD 21.16; China Gold International (02099) fell 5.92% to HKD 190.8; and Shandong Gold (01787) decreased 4.25% to HKD 22.06.

On the news front, the U.S. July CPI decreased from 3.5% to 3.4%, and the core CPI fell from 2.6% to 2.5%, both in line with market expectations. The moderate inflation data did not present any significant surprises, easing the pressure on the Federal Reserve to accelerate interest rate hikes. However, the lack of clear directional data has led to a tug-of-war in the gold market. After the data was released, gold prices initially dipped before rising, and this morning they briefly fell below the USD 4,400 mark.

Gold prices have accumulated an increase of about 8% this month, with last week recording the best weekly performance since January. Liu Yu, chief economist at Industrial Securities, stated that the recent rise in gold prices was mainly driven by a cooling of interest rate hike expectations following the unexpected negative non-farm data, with trading funds amplifying the gains. The SPDR Gold ETF holdings increased by 3.4 tons on August 10, with a cumulative increase of nearly 14 tons since August, while there was a continuous net outflow from March to July. The low positions combined with implied volatility remaining around the low level of 25 also made short-term fluctuations easier to amplify

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