Gold-related equities remain under pressure in Hong Kong trading, with notable declines across the sector. As of the latest update, 珠峰黄金 (01815) dropped 8.1% to HK$1.93, 山东黄金 (01787) fell 4.48% to HK$26.00, 赤峰黄金 (06693) declined 2.71% to HK$40.24, and 灵宝黄金 (03330) slipped 1.62% to HK$21.88.

Market sentiment has shifted after Fed Chair Warsh reiterated the central bank's unwavering commitment to the 2% inflation target, prompting investors to price in a higher likelihood of near-term rate hikes. This has driven a rebound in the U.S. dollar and short-dated Treasury yields, weighing on bullion prices.

Meanwhile, renewed escalation in the Middle East has pushed oil prices higher, adding to inflationary pressures. The U.S. 10-year Treasury yield climbed to 4.78%, reaching its highest level since January 2025, while the 30-year yield advanced to around 5.27%.

According to CITIC Futures, gold is likely to remain range-bound in the near term as it digests recent moves, with rising rate-hike expectations and resurgent energy inflation capping any sharp rebound. However, the U.S. Treasury's earlier long-dated bond buyback program signals that policymakers are increasingly focused on long-term funding costs. As a result, the currency debasement trade has not disappeared despite the Fed's hawkish tilt, and market participants should closely monitor the interplay between real interest rates and the dollar going forward.