--- title: "Understanding the Market | Gold stocks continue to be under pressure, high US CPI means inflationary pressures are still hard to ignore, and the geopolitical situation in the Middle East continues to deteriorate" type: "News" locale: "en" url: "https://longbridge.com/en/news/289402005.md" description: "Affected by the high U.S. CPI and the deteriorating geopolitical situation in the Middle East, gold stocks are under pressure and have declined. Stocks such as Zijin Mining and SD-GOLD have experienced varying degrees of decline. CITIC Futures pointed out that overall inflationary pressures limit the rebound space for gold prices, which are expected to maintain low-level fluctuations in the short term. Citibank predicts that if the Strait of Hormuz remains blocked, gold prices may further drop to $3,500 per ounce, and it has lowered its target price to $4,000" datetime: "2026-06-11T02:36:03.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/289402005.md) - [en](https://longbridge.com/en/news/289402005.md) - [zh-HK](https://longbridge.com/zh-HK/news/289402005.md) --- # Understanding the Market | Gold stocks continue to be under pressure, high US CPI means inflationary pressures are still hard to ignore, and the geopolitical situation in the Middle East continues to deteriorate According to Zhitong Finance APP, gold stocks continue to be under pressure. As of the time of writing, Zijin Gold International (02259) is down 3.87%, trading at HKD 99.3; Zijin Mining (02899) is down 2.96%, trading at HKD 28.84; Chifeng Gold (06693) is down 2.24%, trading at HKD 24.4; Shandong Gold (01787) is down 2.09%, trading at HKD 20.64. On the news front, the latest inflation data for May released by the U.S. last night shows that the CPI rose 4.2% year-on-year, and the core CPI rose 2.9% year-on-year, both in line with market expectations. CITIC Futures believes that the impact of this set of data on gold is not unidirectional in favor or against: the overall high CPI indicates that inflation pressure cannot be ignored, and the conditions for the Federal Reserve to shift to easing are insufficient; the cooling of the core month-on-month data alleviates market concerns about short-term interest rate hikes, allowing gold to recover from its previous rapid decline. In the short term, gold may maintain low-level fluctuations; the cooling of core inflation helps ease short-term selling pressure, but overall inflation remains high, and real interest rates are unlikely to fall quickly, limiting the rebound space. It is worth noting that the geopolitical situation has taken a sharp turn, with the U.S. military confirming strikes against Iran for the second consecutive day. The Iranian armed forces have stated that they have closed the Strait of Hormuz, prohibiting any vessels from passing through. Spot gold has now fallen below the USD 4,100 per ounce mark and has given back all its gains for the year. Citibank's latest report predicts that if the blockage of the Strait of Hormuz continues into this summer, global gold purchasing demand may further shrink, with gold prices potentially falling to USD 3,500 per ounce by September. Currently, Citibank has lowered its three-month gold target price from USD 4,300 per ounce to USD 4,000 per ounce ### Related Stocks - [600547.CN](https://longbridge.com/en/quote/600547.CN.md) - [02899.HK](https://longbridge.com/en/quote/02899.HK.md) - [601899.CN](https://longbridge.com/en/quote/601899.CN.md) - [IAU.US](https://longbridge.com/en/quote/IAU.US.md) - [UGL.US](https://longbridge.com/en/quote/UGL.US.md) - [SGOL.US](https://longbridge.com/en/quote/SGOL.US.md) - [GOLD.AU](https://longbridge.com/en/quote/GOLD.AU.md) - [518880.CN](https://longbridge.com/en/quote/518880.CN.md) - [518850.CN](https://longbridge.com/en/quote/518850.CN.md) - [GLD.US](https://longbridge.com/en/quote/GLD.US.md) ## Related News & Research - [Gold’s near-term outlook remains bearish, chart shows](https://longbridge.com/en/news/289117638.md) - [Gold has tumbled during the Iran war - exposing a massive myth about geopolitical risk](https://longbridge.com/en/news/289050540.md) - [PRECIOUS-Gold steady as lower oil offsets US rate-hike fears](https://longbridge.com/en/news/289163853.md) - [Gold falls on rate-hike fears as Middle East hostilities escalate](https://longbridge.com/en/news/289025021.md) - [The Late-Stage Debt Cycle Is A Hidden Gold Tailwind](https://longbridge.com/en/news/289312975.md)