Sou Hu Cai Jing·2025-10-22 16:36Group 1: Market Overview - The price of precious metals, particularly gold and silver, has experienced a significant decline, with London spot gold dropping to a low of $4002 per ounce and silver to $47 per ounce on October 22 [1] - The sharp decline in gold prices was triggered by a sudden drop on October 21, where gold fell by 6.18%, marking the largest single-day drop since April 2013 [1] - Domestic gold assets also plummeted, with A-share gold stocks experiencing heavy losses and gold futures in Shanghai hitting a low of 933 yuan per gram [1][3] Group 2: Consumer Behavior - Despite the drop in gold prices, consumer sentiment remains strong, with some retail brands adjusting prices upward in anticipation of future increases [2] - For instance, Lao Pu Gold plans to raise prices on October 26, marking its third price increase this year, while Chow Tai Fook also announced a price hike expected to be between 12% and 18% [2] - The decline in gold prices has led to increased foot traffic in physical stores, as consumers rush to purchase before anticipated price increases [2] Group 3: Investment Sentiment - Investor sentiment is showing signs of divergence, with some investors seizing the opportunity to buy during price corrections, viewing it as a chance to "re-enter" the market [5] - The recent volatility has raised questions about whether the long-term bullish trend for gold has changed, despite the short-term fluctuations [5][6] - Analysts suggest that the current market dynamics, including high volatility and profit-taking, indicate a need for caution among investors [1][6] Group 4: Long-term Outlook - Analysts remain optimistic about the long-term prospects for gold, citing strong central bank purchases and ongoing concerns about U.S. fiscal policy as key drivers [9][10] - HSBC forecasts that gold's upward momentum could continue until 2026, with a target price of $5000 per ounce, driven by central bank buying and fiscal concerns [9] - The trend of "de-dollarization" and the potential for further monetary easing are expected to support gold prices in the long run [10]