Shares of Chines gold mining companies are sliding in Hong Kong, with Lingbao Gold sliding more than 6%, Shandong Gold Mining down more than 2%, China Gold International and Zhaojin Mining down nearly 2%.
Gold prices hit the lowest since mid-March after US Federal Reserve Chairman Jerome Powell affirmed that more interest rate hikes are likely ahead until additional progress is made on bringing down inflation.
“Nearly all FOMC participants expect that it will be appropriate to raise interest rates somewhat further by the end of the year,” Powell said in remarks for testimony he will deliver to the House Financial Services Committee.
Following last week’s two-day FOMC meeting, officials indicated they see rate increases totaling 0.5 percentage point through the end of 2023. That would indicate two additional hikes, assuming quarter-point moves. The Fed’s benchmark borrowing rate is currently pegged in a range between 5%-5.25%.