On July 2, Hong Kong-listed gold stocks $Gold (LIST1222.HK)$ mostly rebounded; as of the time of writing, $CHINAGOLDINTL (02099.HK)$ rose more than 14%, $LINGBAO GOLD (03330.HK)$ climbing over 12%, $CHIFENG GOLD (06693.HK)$ with some rising over 10%, $ZIJIN GOLD INTL (02259.HK)$ up over 9%, $SD GOLD (01787.HK)$ rose more than 7%. $ZIJIN MINING (02899.HK)$ Rising more than 5%.
On the news front, Federal Reserve Chair Kevin Warsh stated that inflation expectations have moderated over the past month and reiterated that maintaining price stability remains the core objective of monetary policy. This statement was broadly perceived as neutral to mildly dovish, leading markets to interpret it as signaling limited likelihood of further rate hikes in the near term, thereby weakening bets on an intensified tightening path. Market participants generally believe the Fed has not signaled another near-term rate hike, reducing upward pressure on real interest rates and indirectly supporting gold prices.
CICC noted that looking ahead to the second half of the year, expected revisions to three key narratives could create opportunities for a recovery in gold’s investment demand and market prices. The current gold market may have already fully priced in rate hike expectations, which could face reversal pressures; following the unwinding of previously overweight positions, gold’s safe-haven appeal may re-emerge; and potential repurchases by Gulf central banks could offset recent sales, with continued medium- to long-term support from global central bank gold buying. The firm added that gold prices may currently be overly pricing in rate hike expectations.
Editor/KOKO