Core Viewpoint - Recent fluctuations in international gold prices have led to a significant drop, with prices falling approximately 8% in two days, resulting in a market value loss of over $2.5 trillion. This decline is viewed as a technical correction following a prolonged period of price increases and an overbought market condition [1][2]. Group 1: Price Movements - Since September, international gold prices have been on the rise, reaching a historical high of $4,014.60 per ounce on October 7, and peaking near $4,390 per ounce on October 16. Year-to-date, gold prices have increased by nearly 60% [1]. - The recent drop in gold prices is attributed to profit-taking by investors, a strong U.S. dollar, easing geopolitical tensions, and optimistic expectations regarding trade disputes [2]. Group 2: Market Analysis - Analysts suggest that the recent price drop is a typical "technical correction," with the market having been in an overbought state for an extended period. The sharp rise in prices has led to a crowded bullish market, prompting expectations of selling [2]. - Most market institutions predict that gold prices will likely remain high in the short term, with a potential for consolidation, while the long-term upward trend is expected to continue [2][3]. Group 3: Future Outlook - Goldman Sachs views the recent decline as a technical correction, asserting that the long-term macroeconomic factors driving gold prices upward remain unchanged [3]. - Morgan Stanley believes the price drop is a short-term adjustment rather than the end of a bull market, supported by ongoing central bank purchases, geopolitical risks, and high sovereign debt levels [3]. - Standard Chartered has raised its average gold price forecast for 2026 from $3,875 to $4,488 per ounce, citing increasing global uncertainty and strong demand for gold investments as key drivers [3].