Changes in Hong Kong stocks | Gold stocks are falling across the board, the situation in the US and Iran is heating up, inflation expectations are high, and the dollar is strong and US debt is suppressing precious metal valuations

The Zhitong Finance App learned that gold stocks were lower across the board. As of press release, Tongguan Gold (00340) fell 3.16% to HK$1.84; Shandong Gold (01787) fell 3.05% to HK$17.81; Zijin Gold International (02259) fell 2.85% to HK$95.5; Zijin Mining (02899) fell 2.73% to HK$29.18; Chifeng Gold (06693) fell 2.25% to HK$27.84.

According to the news, the heating up situation in the US and Iran boosted the market's expectations for the Fed's interest rate hike. Gold continued to decline in early trading on July 13, and spot gold fell below 4,100 US dollars. The US Central Command reported that the US side will launch the third round of military attacks on Iran within a week. Afterwards, Iran's Revolutionary Guard Corps Navy announced the blockade of the Strait of Hormuz in the early morning of the 12th, prohibiting all ships from passing until the ban was lifted. Furthermore, “Federal Reserve microphone” Nick Timiraos published an article saying that some colleagues of Federal Reserve Chairman Walsh have increased their concerns about inflation, and they may push for discussions on interest rate hikes when the Federal Reserve holds a meeting from July 28 to 29.

Minmetals Futures believes that precious metals are currently fluctuating downward due to repeated increases in the Middle East region and expectations of interest rate hikes by the Federal Reserve. The breakdown of negotiations on the temporary coordination plan between the US and Iran led to a rebound in energy prices, and the logic of inflation trading returned to the main line of the market. The steady rise in US bond yields compounded the strength of the high level of the US dollar index. Real interest rates continued to rise, suppressing precious metal valuations. Under the policy tone of the Federal Reserve's priority to reduce inflation, if the US-Iran conflict continues to intensify and the global crude oil supply pattern is impacted, the downward pace of US inflation may be delayed. Against this backdrop, the upward space for precious metals is limited.