Chinese gold companies rally as gold price climb amid market concerns about US banking crisis and debt ceiling

 

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In Hong Kong, Lingbao Gold is surging nearly 12%, China Gold International up more than 7%, Zhaojin Mining up more than 5%. In the A-share market, Sichuan Rongda Gold jumped nearly 5% in the morning session, Shandong Gold Mining and Chifeng Jilong Gold Mining up more than 4%.

Genuine angst regarding the debt ceiling and concern about the re-emergence of the banking crisis has weighed on market sentiment, which led to great upside surge in gold price.  Spot gold touched its highest since April 14 at $2,036.15 at one point and US gold futures settled up 0.7% at $2,037. 

The US Fed raised interest rates by a quarter percentage point to quell the inflationary pressures and it also signalled a pause in further increases to assess the fallout from recent bank failures, wait on the resolution of a political standoff over the US debt ceiling, and monitor the course of inflation.