Understanding the Market | Gold Stocks Soar as Powell Opens the Door to Rate Cut in September Amid Sudden Escalation of Middle East Tensions
Gold stocks collectively rose. As of the time of publication, Lingbao Gold rose by 5.52% to HKD 3.63; China Gold International rose by 3.87% to HKD 44.25; Zijin Mining rose by 2.85% to HKD 16.2; Zhaojin Mining rose by 2.43% to HKD 14.32. On the news front, Federal Reserve Chairman Powell stated that the committee had a thorough discussion on rate cuts at this meeting and reached a consensus. If the data supports it, the policy rate could be lowered as early as September. The interest rate futures market has increased bets on nearly 3 rate cuts by the Fed this year. In addition, tensions in the Middle East escalated suddenly as Hamas leader Haniyeh was killed in an attack in Iran. This event will escalate Middle East geopolitics, with Iran retaliating against Israel. Spot gold has currently broken through the $2450 per ounce level, the first time since July 18th
According to the Wise Finance APP, gold stocks collectively rose. As of the time of publication, Lingbao Gold (03330) rose by 5.52% to HKD 3.63; China Gold International (02099) rose by 3.87% to HKD 44.25; Zijin Mining (02899) rose by 2.85% to HKD 16.2; Zhaojin Mining (01818) rose by 2.43% to HKD 14.32.
On the news front, Federal Reserve Chairman Powell stated that the committee at this meeting had a thorough discussion on interest rate cuts and reached a consensus. If the data supports it, the policy rate could be lowered as early as September. The interest rate futures market has increased bets on nearly 3 interest rate cuts by the Federal Reserve this year. In addition, the tension in the Middle East has escalated suddenly, with Hamas leader Haniyeh being killed in an attack in Iran. This event will escalate Middle East geopolitics, and Iran will retaliate against Israel. Spot gold has currently broken through the $2450 per ounce level, the first time since July 18th