HK Gold Stocks Surge on Fed Rate Decision

Gold stocks across Hong Kong surged on Wednesday morning following the Federal Reserve's decision to maintain interest rates. As of press time, Lingbao Gold (03330) led the pack with a 4.75% gain to HK$19.86. China Gold International (02099) and Zijin Gold International (02259) also fared well, climbing 4.72% to HK$184.20 and 4.76% to HK$123.3, respectively. Chifeng Gold (06693) rounded out the top performers with a 4.36% increase to HK$34.46.

The Fed's rate decision sparked a strong reversal in spot gold prices, which rebounded sharply after initially declining. The metal surged past $4,100 per ounce, a significant milestone. Meanwhile, Brent crude oil prices soared as much as 8% to climb back above $90 per barrel, while the yield on the 30-year U.S. Treasury bond reached its highest level since June 2007.

Everbright Futures expressed caution in their analysis of the gold market, advising traders to maintain light positions and adopt a wait-and-see approach amid ongoing geopolitical volatility and macroeconomic uncertainty. With the probability of a September rate hike rising, any interim rallies should be viewed with skepticism.