Gold miners slide 4%-9% as hawkish Fed minutes lift rate-hike bets

Key Takeaways:

Spot gold fell 0.5% to $4,059/oz as rate-hike expectations rose
BofA cut its 2026 average gold price forecast 14% to $4,360/oz
HK-listed gold miners lost 4% to 9% in a broad sector selloff

Spot gold slipped to $4,059 per ounce, down 0.5%, as the Federal Reserve's June meeting minutes revealed growing concern among officials over persistent inflation, with some advocating an immediate rate increase.

"The committee participants judged that inflation remained elevated and that recent data had not provided greater confidence that inflation was moving sustainably toward 2%," the minutes showed. The Fed held the federal funds rate at 3.50%-3.75% but flagged a potential hike by end-2026, according to the document.

Market-implied odds of a September rate hike rose to 69% from 62% the prior day, CME Group's FedWatch tool showed. Bank of America lowered its 2026 average gold price forecast by 14% to $4,360 per ounce, citing expectations of tighter monetary policy. The broker maintained a view that gold could reach $5,000 once the tightening cycle ends.

Hong Kong-listed gold miners sold off broadly. Zijin Mining (02899.HK) fell 4.24% to HK$28.48 on turnover of HK$657 million, while its subsidiary Zijin Gold Intl (02259.HK) dropped 7.67% to HK$96.3. Lingbao Gold (03330.HK) led losses, sliding 8.6% to HK$13.92. Other decliners included Zhaojin Mining (01818.HK) down 5.2%, China Gold Intl (02099.HK) down 5.8%, SD Gold (01787.HK) down 7%, Wanguo Gold GP (03939.HK) down 5%, and Chifeng Gold (06693.HK) down 6.8%.

The selloff extended a period of pressure on gold-linked equities as rising rate expectations increase the opportunity cost of holding non-yielding assets. The BofA downgrade added institutional selling weight. Geopolitical tensions — the US launched airstrikes against Iran for a second consecutive day — may provide a floor for prices, though the near-term direction hinges on the next Fed decision in September.

This article is for informational purposes only and does not constitute investment advice.