Movement Alert|Zijin Mining Rises 3.13% in Regular Trading, US Non-Farm Payrolls Miss Expectations Sharply as Fed Dovish Signals Boost Gold Sector

Market Focus
Jul 06

On July 6, Zijin Mining rose 3.13% in regular trading, trading at HK$31.78/share, with turnover of HK$463 million.

On the news front, US June non-farm payrolls increased by only 57,000, significantly below market expectations of 118,000. The weakening labor market led traders to fully price out the Fed's December rate hike expectations, providing a strong tailwind for gold-related equities. CICC noted that previously fully-priced rate hike expectations may face unwinding pressure, and after prior overweight positions are cleared, gold's safe-haven value is expected to return, driving a technical recovery across the gold sector.

This follows Fed Chair Waller's dovish remarks at the ECB Sintra symposium last week, where he indicated inflation expectations and risks had declined, avoiding discussion of a July rate hike. Gold prices have since reclaimed the $4,000/oz level. Within the Gold sector, ZIJIN GOLD INTL rose 4.84%, CHINAGOLDINTL rose 3.63%, ZHAOJIN MINING rose 2.30%, LINGBAO GOLD rose 1.84%, and CHIFENG GOLD rose 0.53%.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)

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