Gold Safe-Haven Demand Decreases as US-Europe Tensions Ease; ZIJIN MINING Drops Nearly 4%
Gold Price Decline: Gold prices fell after President Trump's decision to withdraw tariff threats against Europe and discuss a future agreement on Greenland, with February futures down 0.94% and spot gold down 1%.
Hong Kong Gold Miners Performance: Hong Kong-listed gold mining companies experienced significant selling pressure, with notable declines in stock prices and high short selling ratios for several firms, including ZIJIN MINING and ZHAOJIN MINING.
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HSI Drops 498 Points at Noon; Commodity Shares Tumble; CSPC Pharma Falls Over 12%
Market Reaction to Fed Chair Nominee: The DXY rose following President Trump's announcement of the Fed Chair nominee, while the Hong Kong stock market experienced significant declines, with the HSI dropping 498 points or 1.8% by the morning session's close.
Gold and Mining Stocks Performance: Gold prices fell over 3%, leading to substantial losses in mining stocks such as SD GOLD and ZIJIN GOLD, which plunged 12.9% and 10% respectively, alongside other mining companies experiencing similar declines.
Pharmaceutical Sector Developments: CSPC PHARMA's stock plummeted 12.5% despite a partnership with AstraZeneca for drug development, which included an upfront payment exceeding HKD9.3 billion.
Corporate News and Market Rumors: The Panama Supreme Court ruled contracts for two local ports unconstitutional, negatively impacting CKH HOLDINGS, while rumors of a potential ownership change at NEW WORLD DEV led to a 3.7% increase in its stock price.
Gold Prices Decline from Recent Highs, Falling 4%; ZHAOJIN and ZIJIN Drop Approximately 10% and 9%
Gold Price Decline: Gold prices have retreated from historical peaks, with spot gold down 4% to USD5,159.07 per ounce, and gold futures for February delivery falling 3.45% to USD5,134.8 per ounce.
Impact on Gold Miners: HK-listed gold miners experienced significant declines, with ZHAOJIN MINING down 9.65%, ZIJIN MINING down 8.8% after issuing USD1.5 billion in convertible bonds, and SD GOLD down 12.72%.
Short Selling Activity: There was notable short selling activity among gold stocks, with ratios exceeding 15% for several companies, indicating bearish sentiment among investors.
Market Outlook: Morgan Stanley suggests that gold prices have not peaked, with a potential bull case predicting prices could reach USD5,700 in the second half of the year.
