Chinese Gold-Mining Stocks Fall After Gold Retreats

By Sherry Qin

Chinese gold-mining stocks fell sharply after the precious metal retreated amid profit-taking and signs of easing U.S.-China tensions.

Shares of Zijin Mining Group were down 3.65% in Hong Kong and 3.1% in Shanghai by midday Wednesday. Zijin Gold International was off by 2.2%, while Zhongjin Gold fell 4.0%.

That came as gold prices dropped in their biggest decline in more than a decade, just one day after notching new record highs. The front-month contract slid 5.7% to $4,087.70 a troy ounce on Tuesday, its largest percentage drop since June 2013, according to FactSet. The most-active gold futures contract also fell 5.7%, to $4,109.10.

Investors appear to be locking in profits after the yellow metal's historic rally in recent weeks. Spot gold, recently 0.2% lower at around $4,116.58 an ounce, has climbed more than 55% this year.

Analysts at ANZ said the absence of the weekly CFTC report--which shows futures market positions--during the U.S. government shutdown could have increased speculative positions by investors.

"Such positioning had built to substantial levels and ultimately triggered the selloff," the analysts said. However, they still see long-term drivers for the metal's prices despite the pullback.

Hopes of easing U.S.-China trade tensions have also undermined gold's safe-haven appeal. President Trump, who is scheduled to meet with Chinese leader Xi Jinping at the APEC summit in South Korea, has signaled optimism about a trade agreement with China.

"I have a great relationship with President Xi. I expect to be able to make a good deal with him," Trump said at a lunch event on Tuesday.

Write to Sherry Qin at sherry.qin@wsj.com

(END) Dow Jones Newswires

October 22, 2025 00:41 ET (04:41 GMT)