Market Insight | Gold stocks collectively decline, spot gold falls below $2500 mark, expectations for significant Fed rate cuts diminish
Gold stocks collectively declined. As of the time of publication, China Gold International fell by 7.07% to HKD 34.85; Lingbao Gold fell by 2.7% to HKD 2.88; Shandong Gold fell by 2.52% to HKD 14.7; and Zijin Mining fell by 2.02% to HKD 15.5. On the news front, spot gold broke below the $2500 mark, currently trading at $2496 per ounce. The U.S. core PCE price index for July, released last Friday, rose by 2.6% year-on-year, consistent with the previous month and slightly lower than the market's expectation of 2.7%. On a month-on-month basis, it rose by 0.2%, in line with expectations. The market's expectation of a significant rate cut by the Federal Reserve in September has weakened, leading to a rebound in the U.S. dollar index and putting pressure on precious metals. Minmetals Futures believes that the current market expectations for Fed monetary policy are already fully reflected in gold and silver prices. The market is currently pricing in a cumulative rate cut of 100 basis points by the end of the year. The bank believes that such pricing is relatively high, and there is potential for a pullback in gold prices regarding expectations for monetary policy
According to the Wisdom Financial APP, gold stocks collectively declined. As of the time of publication, China Gold International (02099) fell by 7.07% to HKD 34.85; Lingbao Gold (03330) fell by 2.7% to HKD 2.88; Shandong Gold (01787) fell by 2.52% to HKD 14.7; and Zijin Mining (02899) fell by 2.02% to HKD 15.5.
On the news front, spot gold broke below the $2500 mark, currently trading at $2496 per ounce. The US core PCE price index for July, released last Friday, rose by 2.6% year-on-year, consistent with the previous month, slightly lower than the market's expectation of 2.7%. On a month-on-month basis, it rose by 0.2%, in line with expectations. The market's expectation of a significant rate cut by the Federal Reserve in September has weakened, leading to a rebound in the US dollar index and putting pressure on precious metals.
Minmetals Futures believes that the current market expectations for the Fed's monetary policy are already fully reflected in the prices of gold and silver. The market is currently pricing in a cumulative rate cut of 100 basis points by the end of the year. The bank believes that such pricing is relatively high, and there is potential for a pullback in gold prices as expectations regarding monetary policy may decline