Tongguan Gold (00340) saw its stock price soar by 5.43% during intraday trading on Friday, as gold prices edged closer to record highs. The surge in Tongguan Gold's share price aligns with a broader rally in gold-related stocks in Hong Kong, reflecting investor optimism in the precious metals sector.
The upward movement in gold prices is attributed to investors bracing for an upcoming U.S. inflation reading, which could play a crucial role in determining the Federal Reserve's monetary policy decisions this year. As gold is often seen as a hedge against inflation, the anticipation of potential monetary easing has bolstered its appeal.
Tongguan Gold's impressive gain was part of a sector-wide trend, with other notable performers including China Gold International Resources, which rose 6%, and Zhaojin Mining and Chifeng Gold, both up 5%. The positive sentiment extended to other gold miners, with Zijin Mining and Shandong Gold also experiencing gains, underlining the strong performance across the gold mining sector in Hong Kong.