[ET Net News Agency, 19 December 2025] Overnight, all three major US indices closed
higher amid volatile trading, and Asia-Pacific markets largely followed suit this morning.
The Bank of Japan raised interest rates by 25 basis points as widely expected. On the eve
of the hike, the Nikkei ended its morning session up 1.16%, with gains extending to 1.41%
after the announcement. The Hang Seng Index opened more than 100 points higher, saw some
early swings, and closed the morning session up 165 points or 0.6% at 25,663, with main
board turnover exceeding HKD 97.5 billion. The Hang Seng China Enterprises Index rose 44
points, or 0.5%, to 8,885, while the Hang Seng Tech Index added 61 points, or 1.1%, to
5,480.

"Jaseper Tsang: HSI likely to remain range-bound between 25,000 and 25,600"

US November CPI rose 2.7% year-on-year, below the expected 3.1% and marking the slowest
increase in four years. The cooling inflation boosted market sentiment and lifted Hong
Kong stocks, with the HSI immediately reclaiming the 10-day moving average (around
25,574). Jaseper Tsang, Vice-Chairman of the Hong Kong Institute of Financial Analysts and
Professional Commentators Limited, told ET Net News Agency that while softer US inflation
gives the Fed some leeway to cut rates, interest rate futures show little change in the
odds of a rate cut in Q1. Most investors believe the Fed will need more labour market
data, as the deterioration seen in the November jobs report alone is not sufficient to
judge the true state of the market.
The HSI has now advanced for three consecutive days, regaining the 25,500 level.
However, Tsang notes that, with institutional investors largely sidelined at year-end and
turnover shrinking, the index remains stuck in a range. Support is seen at 25,000, with
resistance at the 50-day moving average (around 25,600). A breakout to 26,200 is not ruled
out if US markets continue to rebound.

"Silver and platinum outperform gold, but beware of "grey rhino" risks"

Gold surged overnight on expectations of continued Fed easing and heightened
geopolitical tensions. New York gold futures briefly broke above the USD 4,400 per ounce
psychological barrier, reaching an all-time high of USD 4,409.50, while spot gold came
close to its historic high of USD 4,381.60. However, profit-taking soon set in, pulling
futures back below the USD 4,400 mark.
Tsang commented that global central banks, family offices, and institutional investors
are all increasing gold allocations to hedge against dollar weakness. With confidence in
US Treasuries also waning, he expects gold demand to remain robust. Optimistically, gold
could challenge USD 4,500 next year, but prices are likely to remain volatile in the near
term, with no guarantee of a sustained breakout.
He also cautioned that silver and platinum have recently outperformed gold, with gains
over the past month even surpassing those of gold itself, largely fuelled by hot money and
speculative flows amid ample liquidity. Should major economies post weaker-than-expected
data, a "grey rhino" event could trigger a chain reaction, forcing funds to unwind
positions and causing turbulence in precious metals markets.
Although silver and platinum have outpaced gold, Tsang does not recommend buying them at
current levels, noting their detachment from economic fundamentals.
For investors seeking to capture gold's upside, Tsang favours gold ETFs over gold mining
stocks for direct exposure to price movements. Key support for gold is seen at the USD
4,000 level. For those interested in miners, he suggests focusing on companies with high
operating efficiency, significant gold reserves, or a pure-play gold business, such as
Zhaojin Mining (01818), with a recommended entry at HKD 28 and a target price of HKD 35.