Movement Alert|WANGUO GOLD GP Falls 3.91% in Regular Trading, Fed Hawkish Expectations Continue to Pressure Precious Metals and Mining Sector

Market Focus
Oct 02

On October 2, WANGUO GOLD GP fell 3.91% in regular trading, trading at HK$12.97/share, with turnover of HK$15.05 million. The decline came amid broad-based weakness across the Diversified Metals & Mining sector, with LYGEND RESOURCE down 5.0%, MMG down 3.8%, JIAXIN INTL RES down 3.57%, ZIJIN MINING down 2.79%, and CMOC down 1.72%.

On the news front, following the Fed's rate hike to 3.75%-4.00%, multiple officials continued to signal a hawkish stance. Goldman Sachs expects another 25-basis-point hike in October. The 10-year U.S. Treasury yield previously breached 5%, and the U.S. dollar has remained elevated, weighing on COMEX gold prices. Institutions noted that the core factor pressuring gold remains the high interest rate environment, with oil price-driven inflation concerns further reinforcing tightening expectations. The systematic pullback across precious metals and base metals stocks has extended into the current session.

The company reported strong first-half results, with revenue of RMB 1.863 billion, up 50.2% year-over-year, and attributable net profit of RMB 905 million, up 51%. Its flagship Gold Ridge mine maintained an 81% gross margin, supported by rising gold prices and output growth.

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