--- title: "Understanding the Market | ZHAOJIN MINING rises over 11% as the U.S. Treasury expands long-term bond repurchases, boosting the precious metals market; Federal Reserve's high interest rates maintain a loosening cycle" type: "News" locale: "en" url: "https://longbridge.com/en/news/296424665.md" description: "ZHAOJIN MINING rose over 11% in the morning session, and as of the time of writing, it has increased by 11.26%, trading at HKD 26.48, with a transaction volume of HKD 347 million. On the news front, on August 19th local time, the U.S. Department of the Treasury announced that it would at least double the scale of liquidity support repurchase operations for long-term nominal coupon Treasury bonds (10-20 year and 20-30 year maturities). Currently, the maximum scale for each operation is USD 2 billion, and subsequent operations will have a minimum scale of USD 4 billion. The U.S. Treasury also stated that this increase in repurchase operation scale reflects its willingness to provide greater liquidity in the long-term nominal Treasury bond market. Huayuan Securities believes that from a medium-term perspective, the core trading logic of the market has shifted to a pricing chain of \"moderate inflation decline + marginal weakening of employment data → Federal Reserve's high interest rate maintenance cycle loosening → continuous reduction of interest rate hike expectations within the year,\" and the overall market may gradually complete its bottoming process amid ongoing fluctuations. The later stage of the U.S. economic cycle faces multiple constraints of high interest rates, credit contraction, and slowing growth. In the future, whether the Federal Reserve lowers interest rates due to economic slowdown or is forced to maintain high interest rates for a longer time due to sticky inflation, gold possesses strong long-term allocation value" datetime: "2026-08-20T02:21:03.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/296424665.md) - [en](https://longbridge.com/en/news/296424665.md) - [zh-HK](https://longbridge.com/zh-HK/news/296424665.md) --- # Understanding the Market | ZHAOJIN MINING rises over 11% as the U.S. Treasury expands long-term bond repurchases, boosting the precious metals market; Federal Reserve's high interest rates maintain a loosening cycle According to Zhitong Finance APP, ZHAOJIN MINING (01818) rose over 11% in the morning session, and as of the time of writing, it is up 11.26%, trading at HKD 26.48, with a transaction volume of HKD 347 million. On the news front, on August 19 local time, the U.S. Treasury Department announced that it would at least double the scale of liquidity support repurchase operations for long-term nominal fixed-rate Treasury bonds (10-20 year and 20-30 year maturities). The maximum scale for each operation is currently USD 2 billion, and subsequent operations will have a scale of at least USD 4 billion. The U.S. Treasury also stated that this increase in repurchase operation scale reflects its willingness to provide greater liquidity in the long-term nominal Treasury bond market. Huayuan Securities believes that from a medium-term perspective, the core trading logic of the market has shifted to a pricing chain of "moderate inflation decline + marginal weakening of employment data → Federal Reserve's high interest rate maintenance cycle loosening → continuous reduction of interest rate hike expectations within the year," and the overall market may gradually complete its bottoming process amid ongoing fluctuations. The later stage of the U.S. economic cycle faces multiple constraints of high interest rates, credit contraction, and slowing growth. In the future, whether the Federal Reserve cuts interest rates due to economic slowdown or is forced to maintain high interest rates for a longer time due to sticky inflation, gold has strong long-term allocation value ### Related Stocks - [GLD.US](https://longbridge.com/en/quote/GLD.US.md) - [IAU.US](https://longbridge.com/en/quote/IAU.US.md) - [SLV.US](https://longbridge.com/en/quote/SLV.US.md) - [01818.HK](https://longbridge.com/en/quote/01818.HK.md) - [518850.CN](https://longbridge.com/en/quote/518850.CN.md) - [GOLD.AU](https://longbridge.com/en/quote/GOLD.AU.md) ## Related News & Research - [PRECIOUS-Gold holds steady with Fed minutes in focus](https://longbridge.com/en/news/296310600.md) - [PRECIOUS-Gold drops after sharp gains as inflation concerns come to the fore](https://longbridge.com/en/news/296506502.md) - [Mali gold output jumps 30% in first half, beating forecasts](https://longbridge.com/en/news/296240142.md) - [GRAPHIC-Gold shows early signs of reclaiming safe-haven appeal after Iran war selloff](https://longbridge.com/en/news/296127032.md) - [PRECIOUS-Gold slips on firmer Treasury yields, oil prices; Fed minutes in focus](https://longbridge.com/en/news/296177333.md)