HK Stock Market Move | Gold stocks opened higher collectively. The disappointing small non-farm payrolls data combined with easing geopolitical tensions caused spot gold to temporarily break through $4,300.

Gold stocks opened higher collectively. As of the time of writing, Chifeng Jilong Gold Mining (06693) rose 9.08% to HK$38.94; Lingbao Gold (03330) increased by 8.26% to HK$23.34; Shandong Gold Mining (01787) was up 7.83% at HK$23.4; Zhaojin Mining (01818) climbed 6.77% to HK$24.3; Zijin Mining Group (02899) gained 5% to HK$36.96. In terms of news, on August 6, spot gold broke through the $4,300 per ounce mark during trading for the first time since June 18. As of the time of writing, spot gold is reported at $4,274.74 per ounce. The U.S. ADP non-farm employment in July added only 44,000 jobs, below the market expectation of 75,000, indicating a cooling labor market that may ease the Federal Reserve's interest rate pressure. In geopolitical terms, the U.S. and Iran have made positive progress in negotiations to reopen the Strait of Hormuz, with market expectations rising for a temporary agreement, leading to a significant drop in international oil prices, which reduces concerns about energy inflation. CITIC Securities believes that gold remains in a major bull market due to the accelerated expansion of the U.S. fiscal deficit, the difficulty in bridging geopolitical rifts under de-globalization, and continued central bank gold purchases providing support. The current pullback is approaching historical extremes, and the $4,000 per ounce level is likely the bottom area for this round. Looking ahead, it is expected that the situation in the Strait of Hormuz will shift from suppressing gold prices to boosting them, and the Federal Reserve's monetary policy may be more optimistic than market expectations, combined with a surge in U.S. military spending driving up deficits, leading to an expected return of gold prices to an upward channel by the end of the year.