HK Stock Market Move | Gold stocks open lower across the board as US inflation data beats expectations, pressuring precious metals; multiple Fed officials signal hawkish stance.

Gold stocks opened lower across the board this morning. As of press time, LINGBAO GOLD (03330) fell 4.01% to HK$16.75; Shandong Gold Mining (01787) fell 3.92% to HK$18.12; ZIJIN GOLD INTL (02259) fell 3.68% to HK$136; Chifeng Jilong Gold Mining (06693) fell 3.36% to HK$32.24; CHINAGOLDINTL (02099) fell 2.60% to HK$176.0. On the news front, US inflation data came in above expectations, boosting the dollar and US Treasury yields. Spot gold fell more than 3% at one point on Tuesday and dropped below US$4,030 again this morning. A report released by the US Bureau of Labor Statistics on Tuesday showed that US core CPI rose 0.3% month-on-month in October, above the market expectation of 0.2%. After the inflation data was released, traders were still fully pricing in a Fed rate hike in December, while increasing bets on a 50-basis-point hike. It is worth noting that several Fed officials emphasized the need for further policy tightening. Waller said before the data release that if core inflation continues to reach around 0.3% or higher, a 50-basis-point rate hike in December should be considered; Logan advocated at least two more 25-basis-point hikes, with the pace of action in winter potentially faster than in autumn. Bowman also said that with inflationary pressures persisting and the labor market stabilizing, more effort is still needed to bring prices back to 2%.