Core Viewpoint - The recent sharp decline in gold prices is attributed to a combination of reduced risk appetite, a strong dollar, and technical selling triggered by algorithmic trading [3][4][6]. Group 1: Reasons for Gold Price Drop - Decreased risk appetite due to improved geopolitical signals from the US-China interactions and potential ceasefire talks in Ukraine, leading to reduced demand for gold as a safe-haven asset [3]. - A strong rebound in the dollar index, driven by expectations of adjustments in Japan's yield curve control, which increased the cost of holding gold priced in dollars [4]. - Technical selling pressure as gold prices surged from $2,624 to $4,381 in 2025, prompting algorithmic trading to trigger sell-offs once the price fell below the critical support level of $1,900 [4]. Group 2: Impact on Different Stakeholders - For consumers looking to buy gold jewelry, the price drop presents an opportunity, with prices at around 1,198 RMB per gram, down from 1,245 RMB, allowing for potential savings [6]. - Investors holding gold ETFs or paper gold should remain calm and not panic sell, as the market may stabilize [6]. - For those considering buying physical gold bars, a phased approach is recommended, with suggested entry points at $1,880 and $1,850 per ounce to mitigate risks [6]. Group 3: Market Outlook - Short-term outlook suggests continued pressure on gold prices due to geopolitical factors and a strong dollar, with potential dips to $1,850 [8]. - Long-term prospects remain positive, with central banks continuing to accumulate gold, and expectations of interest rate cuts in the future could enhance gold's attractiveness as an investment [9]. Group 4: Institutional Price Targets - Goldman Sachs projects gold prices could reach $4,900 by the end of 2026, while JPMorgan suggests extreme scenarios could push prices to $5,055 [10]. - Citigroup indicates that as long as global central bank purchases exceed 1,000 tons annually, gold prices will steadily rise above $2,200 [10]. Group 5: Investment Strategies - For consumers needing gold jewelry, it is advisable to observe the market for two weeks and consider buying if prices fall below 1,180 RMB per gram [11]. - Investors in gold bars should adopt a dollar-cost averaging strategy, buying in increments as prices decline [11]. - For paper gold or ETFs, setting a stop-loss at $1,880 is recommended, but panic selling is discouraged [11].