Understanding the Market | Gold stocks collectively decline, with Chifeng Gold dropping over 4%, as strong U.S. non-farm payrolls hit interest rate cut expectations

Gold stocks collectively declined. As of the time of publication, CHIFENG GOLD fell by 4.64%, trading at HKD 25.7; TONGGUAN GOLD dropped by 4.13%, trading at HKD 2.09; CHINAGOLDINTL decreased by 3.28%, trading at HKD 70.75; and SD GOLD fell by 2.45%, trading at HKD 27.9. In terms of news, the U.S. added 147,000 non-farm jobs in June after adjustment, better than expected, and the unemployment rate unexpectedly dropped to 4.1%. Traders are no longer betting on a rate cut by the Federal Reserve in July, and the probability of a rate cut in September has also decreased. Following the data release, the U.S. dollar index surged, while gold prices fell sharply before rebounding slightly. A recent research report from CITIC Construction Investment pointed out that under the judgment of trade easing and recovery trading in the second half of the year, the short-term bullish factors for gold are not significant. If combined with events such as a strong global stock market and easing of the Russia-Ukraine conflict, risk appetite may rebound, and a significant pullback in gold prices at historical highs cannot be ruled out