Asian Gold Stocks Slump on Fed Rate Fears
Asian gold mining stocks fell sharply on Monday after gold prices plummeted over 3% on Friday, sparked by hawkish comments from Federal Reserve Chair Kevin Warsh.
The decline in bullion was largely attributed to Warsh's remarks at the Jackson Hole conference, which boosted expectations of a September rate hike to around 58%, up from 36% previously.
Gold prices dropped to their lowest since August 20, hitting $4,567 an ounce on Friday, while the dollar strengthened and Treasury yields rose. This move undermined demand for gold, which does not generate interest income.
The selloff had a significant impact on Asian gold mining stocks, with several companies experiencing losses. Shandong Gold, however, bucked the trend with an 8.1% gain to HK$27.58, following a strong first-half earnings report.