Core Points - The Tokyo stock market experienced a decline on November 7, with the Nikkei 225 index falling by 1.19% and the Tokyo Stock Exchange index decreasing by 0.44% [1][2] - Investor risk aversion increased due to the significant drop in the U.S. stock market, particularly affecting semiconductor-related stocks, which saw major sell-offs by institutional investors [1] - The Nikkei index briefly dropped over 1200 points, falling below the 50000 mark, with a peak decline exceeding 2% [1] Market Performance - The Nikkei index closed down by 607.31 points at 50276.37 points, while the Tokyo Stock Exchange index fell by 14.60 points to 3298.85 points [2] - Among the 33 industry sectors on the Tokyo Stock Exchange, service, marine transportation, and steel sectors showed gains, while non-ferrous metals, electrical products, and machinery sectors led the declines [2]

Core Insights - International gold prices have significantly increased, with December futures closing at $3,516.10 per ounce, marking a 1.20% rise on August 29. The overall increase for August exceeded 5% [1][3]. Economic Factors - The latest U.S. inflation data revealed a 2.9% year-on-year increase in the core personal consumption expenditure price index for July, which has heightened market expectations for a potential interest rate cut by the Federal Reserve in September [1]. - Concerns regarding the independence of the Federal Reserve, particularly following President Trump's dismissal of Fed Governor Cook, have led to increased investor risk aversion, contributing to the rise in gold prices [3][5]. Market Predictions - Analysts from Bank of America highlighted two key reasons for the surge in gold prices: the Fed's openness to rate cuts despite inflation risks and the market's growing skepticism about the Fed's independence, prompting investors to seek gold as a safe haven [5]. - The market anticipates one or two interest rate cuts from the Federal Reserve within the year, which is expected to support commodity prices, including gold and silver. Several financial institutions have raised their gold price forecasts, with UBS projecting a target of $3,700 per ounce by mid-2026 and Bank of America estimating a peak of $4,000 per ounce by the same timeframe [7].