CHOW SANG SANG(HK:00116) Jin Shi Shu Ju·2025-10-22 01:51Core Viewpoint - The recent decline in gold prices is attributed to profit-taking by investors after a significant rise, influenced by expectations of further interest rate cuts by the Federal Reserve and a decrease in safe-haven demand [5][6]. Price Movements - On October 21, spot gold fell by 5.18%, closing at $4130.41 per ounce, marking the largest single-day drop in five years [3]. - As of October 22, spot gold was reported at $4109.697 per ounce, down 0.37%, while COMEX gold futures rose by 0.18% [1]. Market Reactions - The decline in gold prices has led to significant reductions in domestic gold jewelry prices, with notable drops in various brands: Lao Miao down by 83 RMB to 1211 RMB per gram, Chow Sang Sang down by 39 RMB to 1250 RMB per gram, and Lao Feng Xiang down by 61 RMB to 1229 RMB per gram [3]. Future Outlook - Analysts express mixed views on the future of gold prices, with some suggesting that the potential for further declines is greater than increases, depending on the behavior of high-net-worth investors in the West [6][7]. - HSBC forecasts that gold's upward momentum may continue until 2026, driven by strong central bank purchases and ongoing fiscal concerns in the U.S., with a target price of $5000 per ounce [7].