Precious Metals Equities Slide as Long-Dated Yields Create Headwinds, Investors Await Fed Minutes

Stock News15:05

Shares of gold companies mostly declined in Hong Kong trading on Tuesday, with 珠峰黄金 (01815) dropping 4.58% to HK$1.665, 紫金黄金国际 (02259) falling 4.35% to HK$131.8, 中国白银集团 (00815) losing 3.51% to HK$0.275, and 灵宝黄金 (03330) slipping 0.73% to HK$21.88.

The recent rise in long-term government bond yields across the United States, Europe, and Japan is weighing on bullion prices, with the 30-year U.S. Treasury yield climbing to its highest level since 2007, increasing the opportunity cost of holding gold. Meanwhile, recurring tensions in the Middle East have kept oil prices elevated and volatile.

Market participants are now focusing on the upcoming release of the Federal Reserve's July policy meeting minutes, hoping for clearer signals regarding the future direction of U.S. interest rates. According to 中信期货, gold prices are likely to remain rangebound at elevated levels in the near term, with attention centered on the Fed's language concerning its policy trajectory and whether the upward move in long-end yields is driven by real rates, term premiums, or fiscal concerns. If the dollar and rate-hike expectations continue to cool, the pressure on gold from long-dated bond selling may be limited; however, if rising energy prices rekindle inflation and rate-hike bets, volatility in the gold market could intensify.

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