Understanding the Market | Gold Stocks Rebound in Early Trading as the Federal Reserve Cuts Rates by 25 Basis Points as Expected, Spot Gold Returns to $2,700

Gold stocks rebounded in the morning session. As of the time of publication, Zijin Mining rose 3.3% to HKD 16.92; Lingbao Gold increased 1.23% to HKD 3.3; Shandong Gold was up 0.81% to HKD 14.88; China Gold International gained 0.68% to HKD 36.87. On the news front, the Federal Reserve lowered interest rates by 25 basis points as expected, and Fed Chairman Jerome Powell stated that he would not resign due to Trump's election and would not resign voluntarily. In the short term, the election results will not affect policy, and future rate cuts can be fast or slow as needed, while rate hikes are not planned. Overnight spot gold rebounded by more than 1%, returning to above USD 2,700. Huatai Futures believes that as the impact of the election gradually fades, precious metals are expected to return to their previous trend, with gold still having a good outlook under the backdrop of likely continued declines in real interest rates