Understanding the Market | Gold Stocks Drop Collectively as Strong Dollar Pressures Precious Metals, Spot Gold Falls Below $5,100
Gold stocks collectively declined, with Everest Gold falling 6.29% and Zijin Mining dropping 5.83%. Spot gold fell below $5,100, currently down nearly 2%; spot silver plummeted over 4%. The U.S. dollar index rose to 99.6, with an intraday increase of 0.66%. The escalation of conflicts in the Middle East has led to a significant surge in international oil prices. The U.S. non-farm payrolls for February decreased by 92,000, while the market expected an increase of 59,000. Huatai Futures believes that the sluggish gold prices are mainly due to inflation concerns and tightening liquidity, but the poor non-farm data may be short-term favorable for gold
According to Zhitong Finance APP, gold stocks collectively fell. As of the time of publication, Everest Gold (01815) dropped 6.29% to HKD 1.34; Zijin Mining (02899) fell 5.83% to HKD 37.78; China Silver Group (00815) decreased 5.26% to HKD 0.54; Chifeng Gold (06693) declined 5.03% to HKD 37.8.
On the news front, on March 9, spot gold and spot silver both plummeted at the opening. Spot gold fell below USD 5,100, currently down nearly 2%; spot silver dropped over 4%. The US dollar index rose to 99.6 during Monday's Asian session, with an intraday increase of 0.66%. Additionally, the ongoing escalation of conflict in the Middle East has nearly halted commercial transportation in the Strait of Hormuz, driving international oil prices to surge significantly, with both WTI and Brent crude futures breaking above USD 110 per barrel this morning.
It is noteworthy that the latest data from the U.S. Bureau of Labor Statistics shows that the U.S. non-farm payrolls adjusted for February decreased by 92,000, marking a return to negative values for the first time since October 2025, while the market had expected an increase of 59,000. Huatai Futures believes that the recent sluggish performance of gold prices may be primarily due to market concerns about inflation amid soaring energy prices and the liquidity tightening effects caused by significant fluctuations in the equity market. However, due to the disappointing non-farm data, the market may lean towards trading U.S. economic stagflation in the short term, which is relatively favorable for gold prices
