Mining Stocks Surge in Hong Kong, China as Gold Hits Record
By Sherry Qin
Mining stocks rose sharply in Hong Kong and China as gold prices surged past a new milestone on U.S. government shutdown fears, geopolitical tensions and macroeconomic uncertainty.
Spot gold climbed above US$5,000 a troy ounce for the first time on Monday and was last up 2.0% at $5,088.75 a troy ounce.
The rally propelled shares of China- and Hong Kong-listed gold miners higher. Zijin Mining Group climbed 7.1% in Hong Kong and 7.0% in Shanghai. Its gold-mining arm, Zijin Gold International, rose 5.05%. Shandong Gold Mining and Zhongjin Gold were up 5.0% and 10.0%, respectively.
The risk of a U.S. government shutdown rose after Senate Democrats said they wouldn’t vote for a funding package without major changes to the homeland security provisions following the fatal Minneapolis shooting by immigration agents.
Lawmakers must get a spending package to President Trump’s desk for signature by Friday, or a shutdown could be triggered.
The surge in gold prices is “justifiable given the rise in geopolitical risks and [the] macro environment,” William Blair analyst Alexandra Symeonidi said in a note.
The U.S.’s seizure of Venezuela’s strongman Nicolas Maduro and President Trump’s ambition to annex Greenland have both heightened geopolitical tensions and pushed up prices for the safe-haven asset.
The Fed’s policy path is uncertain amid question marks about the U.S. economy and the next Fed leadership, Symeonidi noted, adding that there is growing consensus among market participants that the dollar may remain weak.
Write to Sherry Qin at sherry.qin@wsj.com
(END) Dow Jones Newswires
01-25-26 2229ET
