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Hong Kong Stock Market Fluctuations | Gold Stocks Lead Gains; Precious Metals Liquidity Crisis Temporarily Eased; Institutions Remain Optimistic About Mid- to Long-Term Gold Prices
Gold stocks lead the gains, according to Cninfo Finance APP. As of the latest report, China Gold International (02099) rose 6.37% to HKD 160.2; Lingbao Gold (03330) increased 6.43% to HKD 25.16; Zijin Gold International (02259) gained 5.77% to HKD 190.5; Shandong Gold (01787) rose 4.74% to HKD 32.68.
On the news front, since the outbreak of Middle East geopolitical conflicts, international oil prices have surged, triggering inflation expectations and significantly weakening the Fed and other major central banks’ short-term rate cut expectations, leading to a global asset revaluation. On March 25, spot gold and silver prices rebounded strongly, with domestic gold prices returning above 1000 yuan per gram.
Saxo Bank’s Head of Commodities Strategy pointed out that during moments when investors suddenly need liquidity, precious metals have become a crowded long position, making them more susceptible to forced liquidations. Because in times of market fundraising, gold is one of the easiest assets to quickly convert into cash. Analysts at Standard Chartered also expressed an optimistic outlook on the long-term prospects of gold.