Group 1 - The recent decline in gold prices is surprising given the prevailing global uncertainties, which typically drive investors towards gold as a safe haven asset [1][3] - Despite expectations for gold prices to rise above $2000 per ounce following the Federal Reserve's continued interest rate hikes, market sentiment has shifted, leading to a decrease in gold demand [3][5] - Investors are increasingly favoring higher returns from U.S. Treasury bonds, especially as the 10-year Treasury yield surpasses 3.5%, resulting in a significant outflow of funds from the gold market [5][7] Group 2 - The easing of pandemic restrictions in domestic markets has led to a recovery in economic activity and consumer confidence, prompting investors to shift their focus towards equities, particularly in high-risk sectors like technology and renewable energy [5][7] - The current performance of the gold market reflects a change in investor perception of risk, as gold is losing its appeal when market sentiment favors stocks and bonds [7] - The lack of a significant crisis has contributed to gold being perceived as less attractive, raising questions about whether investors are overly reliant on the expectation of rising gold prices while neglecting deeper market dynamics [7]

Core Viewpoint - Gold prices are experiencing a decline from record highs due to improved market sentiment and a rebound in the US dollar, despite ongoing long-term bullish factors for gold [1][6][7] Market Sentiment Shift - The shift in market sentiment is closely linked to gold price fluctuations, with a previous increase of over 26% since early 2025 driven by trade tensions and geopolitical uncertainties [3] - President Trump's comments about not firing Federal Reserve Chairman Powell and progress on tariff issues have alleviated concerns about the Fed's independence and reduced risks of escalating trade tensions, leading to a preference for risk assets over safe havens like gold [2][3] Technical Adjustment Pressure - Following the record high of $3500, gold prices have seen a sharp reversal, indicating potential for further technical adjustments [4] - The strengthening of the US dollar is exerting additional pressure on gold prices, as a stronger dollar makes gold more expensive for investors holding other currencies [4] Performance of Other Precious Metals - Despite the decline in gold prices, other precious metals have shown relative stability, with silver rising by 3% to $33.48 per ounce, platinum increasing by approximately 1.1% to $969.1, and palladium holding steady at $935.59 [5] Market Outlook - Long-term drivers for gold prices remain intact, including trade tensions, geopolitical uncertainties, and complex global economic conditions that support safe-haven demand [6] - Short-term adjustments may continue due to improved market sentiment and the dollar's rebound, necessitating close monitoring of trade negotiations, Federal Reserve policy changes, and global economic data [7]