HK Gold Stocks Surge Amid Spot Gold Rebound and Fed Rate Hike Expectations

Gold stocks have been on an upward trend in Hong Kong's stock market, despite volatility. Lingbao Gold (03330) was up 5.55% at HK$23.96 and Chifeng Gold (06693) gained 4.48% to HK$38.22 as of press time.

Shandong Gold (01787) also rose 3.85% to HK$24.26, while Zijin Gold International (02259) advanced 3.4% to HK$161.1. These gains come amid a rebound in spot gold, which surged above $4,300 per ounce this morning.

The Federal Reserve's interest-rate decision is imminent, and market participants are closely watching its outcome. A CME FedWatch Tool shows that traders now see a greater than 90% probability of a 25 basis point rate hike in September.

Analysts note that if the Fed raises rates as expected, gold could stage a modest 'buy-the-dip' rally as long-standing uncertainty is lifted. However, if the Fed unexpectedly holds rates steady, gold prices could rise sharply.