智通财经网·2025-10-23 03:11Core Viewpoint - The significant drop in gold and silver prices on October 21, with London gold experiencing its largest single-day decline since April 2013, is attributed to trading factors rather than changes in market expectations [1][2]. Price Analysis - Gold prices are expected to find support at the $4000 level, with a historical context provided by previous price movements in April, where gold saw a high of $3500 and subsequent declines [2][3]. - The current high for gold was noted at $4381 on October 20, and the ongoing U.S. fiscal deficit and declining fiat currency credibility are projected to sustain mid-term upward pressure on gold prices [2]. Volatility Insights - The implied volatility of gold has decreased following the significant price drop, with the CBOE gold ETF volatility peaking at 32.78% on October 16 and then falling to 29.82% on October 22 [3]. - The expectation is for gold prices to stabilize once implied volatility returns to around 20%, indicating a potential period of sideways movement in the market [3].