Core Viewpoint - Recent expectations of interest rate cuts by the Federal Reserve have significantly boosted international gold prices, with London spot gold reaching a historic high of $3,703.13 per ounce on September 16 [1] Summary by Relevant Categories Market Performance - On September 16, London spot gold prices surpassed the $3,700 per ounce mark for the first time, achieving a peak of $3,703.13 per ounce, marking a historical high [1] Economic Factors - The anticipated interest rate cuts by the Federal Reserve are seen as a major driver for the gold market, with industry experts suggesting that a series of rate cuts within the year is highly probable [1] - The ongoing "rate cut cycle" is identified as a core trading logic for gold, leading to expectations that gold prices are likely to rise while facing challenges in declining [1] Long-term Outlook - Factors supporting the long-term upward trend in gold prices include global geopolitical tensions, high U.S. debt levels, continuous gold purchases by central banks, and the Federal Reserve's rate cut cycle [1] - Industry professionals believe that despite potential short-term volatility, the long-term positive trend for gold remains intact [1]

Core Viewpoint - The recent volatility in gold prices has transformed it from a traditional safe-haven asset into a high-risk investment, particularly among younger investors who treat it like a stock for short-term trading [3][4]. Group 1: Market Dynamics - Since May, gold has experienced significant fluctuations, with daily price changes often exceeding 2%, comparable to tech stocks [3]. - The interplay of three main forces is driving this volatility: hawkish signals from the Federal Reserve boosting the dollar index, progress in China-U.S. trade negotiations reducing safe-haven demand, and ongoing gold purchases by global central banks providing a support mechanism [3]. Group 2: Investor Behavior - Younger investors, particularly those born in the 1990s, now account for 47% of bank gold accumulation business, showing a trend of frequent trading and a preference for short-term gains [3]. - This shift in investment strategy contrasts sharply with older generations who view gold as a long-term asset for wealth preservation [3]. Group 3: Historical Context and Lessons - Historical instances of gold price drops, such as a 9% decline in 2008 and prolonged losses after the 2013 buying spree by Chinese retail investors, highlight the risks associated with short-term trading in gold [3]. - The current market conditions serve as a reminder that all assets have cyclical patterns, and chasing price movements can lead to significant risks [4].