Core Viewpoint - The continuous interest rate hikes by the Federal Reserve and the strong rise of the US dollar index have put significant pressure on international gold prices, which have fallen from a peak of $2078.8 per ounce in March to a low of $1618.3 per ounce last month. However, contrary to previous trends, domestic gold stores in China are experiencing poor sales despite the drop in gold prices [1][3]. Group 1: Reasons for Poor Domestic Gold Sales - The decline in international gold prices has not translated into significant price drops in domestic gold stores due to the limited decrease in domestic gold prices, which are affected by the depreciation of the Chinese yuan against the US dollar [3][5]. - The majority of gold sold in domestic stores consists of jewelry, which includes high processing and design fees that do not adjust with international gold price fluctuations, resulting in minimal price reductions for consumers [3][5]. - Domestic demand for gold has decreased significantly due to the ongoing economic downturn and the impact of repeated COVID-19 outbreaks, leading consumers to cut back on non-essential spending, including gold jewelry [5][7]. Group 2: Changing Consumer Preferences - The younger generation shows a declining interest in gold jewelry, viewing it as outdated and preferring luxury items like designer bags and high-performance cars to express their personal style and economic status [7][9]. - Consumers are becoming increasingly savvy regarding the resale of gold, often facing unfavorable buyback prices compared to their purchase prices, which diminishes their willingness to invest in gold [9].

Core Viewpoint - The steel market is experiencing a downward trend in prices due to high inventory levels and lower-than-expected demand, but there are expectations for a rebound in the upcoming "Golden September and Silver October" season [1][2]. Group 1: Market Trends - Last week, the national rebar market prices fell slightly, with an overall decline of 10-30 yuan/ton, and a cumulative drop exceeding 100 yuan/ton [1]. - Steel production in September is at historically high levels, but sales remain flat compared to last year, contributing to recent price declines [2]. - Analysts indicate that despite the recent downturn, confidence among traders remains, with an increase in bullish sentiment for the steel market [2]. Group 2: Supply and Demand Dynamics - There are currently 12 planned production line repairs affecting 11 steel mills, expected to impact finished product output by approximately 46,150 tons per day [3]. - The overall operating rate of blast furnaces and rolling lines remains high, with steel mills showing strong production enthusiasm despite low profit margins [3]. - Regional inventory pressures are easing in the western and southern areas, while demand is slow to start in eastern, northern, and northeastern regions [4]. Group 3: Profitability and Future Outlook - Most steel enterprises are still profitable despite low margins, with plate manufacturers performing better than long product manufacturers [4]. - The steel market faces significant downward pressure due to high inventory levels and uncertainties related to potential COVID-19 outbreaks in the autumn and winter [4][5]. - There is a divergence in market sentiment regarding the upcoming demand, with some analysts cautioning against overly optimistic expectations for price increases [5].