Shandong Gold surges 8% as spot gold breaks $4,500

Shandong Gold (1787.HK) surged 8% during morning trading in Hong Kong to HK$25.80, after touching an intraday high of HK$26.68 on turnover of approximately HK$798 million.

The rally came as spot gold breached the US$4,500 mark, reaching US$4,522.78 per ounce, following the U.S. Treasury's announcement to at least double its buyback program for 10- to 30-year bonds, which pushed down yields and the dollar index.

Adding to bullish momentum, total U.S. federal debt surpassed US$40 trillion on Aug. 18, intensifying concerns over sovereign credit and fiscal sustainability. Central banks globally continue to increase gold holdings to diversify reserves, providing medium- to long-term support for bullion prices.