Hong Kong Stock Market Movement | Gold Stocks Lead Gains, US and Iran Both Signal Ceasefire, US Dollar and US Treasuries Retreat, Easing Gold Price Pressure

Zhitong Finance APP has learned that gold stocks led the gains. As of the time of this report, Tongguan Gold (00340) is up 6.92%, trading at HK$3.09; Zijin Gold International (02259) is up 6.66%, trading at HK$185.7; Zijin Mining (02899) is up 5.53%, trading at HK$36.26; Lingbao Gold (03330) is up 5.04%, trading at HK$27.1.

On the news front, on March 31, affected by both the U.S. and Iran signaling that they are willing to end the conflict, Brent crude oil prices fell sharply in the late session, while gold prices surged significantly in the late session. Institutions said that with the war potentially ending, oil prices could be pressured lower, and this also led to a decline in the U.S. dollar and U.S. Treasury yields, temporarily easing the downward pressure on gold. However, gold’s short-term volatility remains high, and it is necessary to monitor developments in the U.S.-Iran conflict, oil prices, and the U.S. dollar’s trend.

Goldman Sachs believes that this decline in gold “has clearly overshot,” with the market overestimating inflation and underestimating the downside risk to growth; as prices stabilize, it is expected that central banks’ gold purchasing will pick up again, with average monthly procurement of about 60 tons; together with the expectation that there will be two more rate cuts this year, it maintains its gold price target of $5,400 per ounce by the end of 2026.