Core Viewpoint - The recent decline in spot gold prices has continued, dropping below $4200 per ounce with a decrease of over 3% [1] Group 1: Market Performance - On October 17, international gold and silver prices experienced significant declines, with London spot gold falling below $4220 per ounce, showing a daily drop of over 2% [1] - London spot silver also fell below $52 per ounce, with a daily decline exceeding 4% [1] - COMEX gold futures prices dropped to a low of $4226 per ounce, while COMEX silver futures fell over 5%, reaching around $50 per ounce [4] Group 2: Institutional Insights - HSBC recently indicated that gold remains supported by strong investor sentiment and ongoing diversification by official institutions, predicting that structural and macro factors will drive gold prices upward until 2026 [7] - However, HSBC warned that if the Federal Reserve's rate cuts are fewer than market expectations, the upward trajectory of gold may face resistance [7] - Longcheng Futures noted that the combination of macroeconomic easing expectations, risk aversion, and capital inflows has driven gold prices to show a volatile upward trend, but cautioned against technical pullbacks due to profit-taking [7] - Guojin Futures highlighted that the easing of geopolitical tensions and profit-taking by some long positions could lead to significant price corrections in precious metals after recent sharp increases [7] Group 3: Broader Market Context - The U.S. stock market showed a slight rebound on October 17, with the Dow Jones up 0.22% to 46053.43 points, the Nasdaq up 0.07% to 22579.42 points, and the S&P 500 up 0.11% to 6636.43 points [7]

Group 1 - International gold and silver prices experienced a significant drop, with London spot gold falling below $4220 per ounce, down over 2% during the day, and London spot silver dropping below $52 per ounce, with a decline exceeding 4% [1] - In the futures market, COMEX gold futures hit a low of $4226 per ounce, while COMEX silver futures plummeted over 5%, reaching around $50 per ounce [1] Group 2 - Several institutions had previously warned of risks before the recent sharp decline. HSBC's report indicated that gold remains supported by strong investor sentiment and ongoing diversification by official institutions, predicting that structural and macro factors will drive gold prices upward until 2026. However, they cautioned that fewer interest rate cuts by the Federal Reserve than expected could hinder gold's upward trajectory [4] - Longcheng Futures' analysis highlighted a threefold driving force for gold's upward trend, including macroeconomic easing expectations, risk aversion, and capital inflows, but warned of potential technical corrections due to profit-taking [4] - Guojin Futures noted a cooling of geopolitical tensions and profit-taking behavior among some long positions, suggesting caution regarding the risk of significant price corrections in precious metals after substantial short-term gains [4]

Core Viewpoint - The price of gold has reached historical highs following the Federal Reserve's interest rate cuts, with London gold hitting $3,791.08 per ounce, reflecting a significant market reaction to monetary policy changes [1] Group 1: Gold Price Movement - London gold's current price is $3,757.12 per ounce as of September 25, with a daily increase of nearly 0.4% [1] - The recent price adjustment is primarily driven by a rebound in the US dollar, which rose approximately 0.65%, reaching a near two-week high, making gold more expensive for holders of other currencies [1] Group 2: Market Analysis and Predictions - The commencement of the Federal Reserve's rate cut cycle is seen as a core driver for gold and silver prices, with expectations of two more rate cuts within the year [1] - Technical correction pressure exists for precious metal prices after consecutive highs, and hawkish signals from multiple Federal Reserve officials could lead to increased short-term volatility if profit-taking occurs among bullish investors [1]