Core Viewpoint - As of the end of July, China's foreign exchange reserves decreased to $32,922 billion, a decline of $2.52 billion or 0.76% from the end of June, primarily due to the appreciation of the US dollar and fluctuations in asset prices [1][2] Foreign Exchange Reserves - The decline in foreign exchange reserves is attributed to the rise in the US dollar index, which reached 100 points in July, influenced by expectations of high inflation and strong economic data, leading to a depreciation of non-USD currencies such as the Japanese yen, euro, and British pound by 4.5%, 3.2%, and 3.8% respectively [1][2] - The valuation of foreign exchange reserves in USD means that the depreciation of non-USD assets contributed significantly to the decrease in reserves [1] Asset Price Changes - The postponement of interest rate cuts by the Federal Reserve led to a slight decline of 0.1% in the USD-hedged global bond index, negatively impacting foreign exchange reserves, while US stock indices reached new highs, providing some support [2] Future Outlook - The National Foreign Exchange Administration expects that China's foreign exchange reserves will remain stable due to the strong economic fundamentals and resilience of the Chinese economy [3] - The current level of foreign exchange reserves is considered adequate, providing support for maintaining the RMB exchange rate at a reasonable equilibrium and acting as a buffer against potential external shocks [3] Gold Reserves - China continues to increase its gold reserves, which reached 73.96 million ounces by the end of July, marking a month-on-month increase of 6,000 ounces, representing the ninth consecutive month of gold accumulation [1][4] - The value of China's gold reserves is approximately $244 billion, accounting for 7.41% of the total foreign exchange reserves, which is the highest proportion in three months [4] - The People's Bank of China is maintaining a steady pace of gold accumulation to optimize reserve structure and manage liquidity while mitigating geopolitical risks and market volatility [4][5]

Core Insights - The price of gold jewelry has dropped below 1000 yuan per gram, leading to increased consumer interest and foot traffic in jewelry stores [1][3] - Major brands like Chow Tai Fook and Lao Feng Xiang have seen their gold prices fall to around 998 yuan per gram, with smaller brands offering even lower prices [3] - The decline in gold prices is attributed to a strong US dollar and decreasing geopolitical risks, which have reduced the demand for gold as a safe-haven asset [3] Industry Trends - The recent drop in gold prices presents a buying opportunity for consumers looking to purchase gold jewelry [4] - Consumers are advised to choose reputable stores and verify the purity and quality of gold before making purchases [4] - Despite the current price drop, gold remains a significant asset for consumers, valued both for its aesthetic appeal and as a means of wealth preservation [4]

Group 1 - The US dollar index rose by 0.23% to close at 99.237, reflecting a strong performance against a basket of currencies due to easing trade tensions [1] - The White House confirmed that the 25% import tariff on automobiles will remain, but new measures will prevent the steel and aluminum tariffs from stacking on top of it [1] - The US Commerce Secretary announced that the Trump administration has reached its first trade agreement, although details regarding the involved countries were not disclosed [1] Group 2 - The US international trade deficit for March was reported at $162 billion, exceeding market expectations of $145 billion and the revised $147.8 billion from February [2] - The euro and pound weakened against the dollar, with the euro at 1.1382 and the pound at 1.3402, both lower than the previous trading day [2] - The dollar strengthened against the Japanese yen, Swiss franc, Canadian dollar, and Swedish krona, with notable rates of 142.29 yen, 0.8242 franc, 1.3846 dollar, and 9.6292 krona respectively [2]

Core Viewpoint - The recent fluctuations in gold prices are influenced by easing trade tensions between the U.S. and China, alongside changes in ETF holdings and market sentiment towards gold [1][2][3]. Group 1: Gold Price Movement - On April 25, gold prices closed at $3,318.62 per ounce, down $31.14 or 0.93%, with a daily high of $3,370.06 and a low of $3,264.99 [1]. - The market is currently experiencing a tendency for investors to buy on dips, suggesting a potential for gold prices to regain an upward trend despite recent declines [2]. Group 2: ETF Holdings and Market Sentiment - As of April 25, gold ETF holdings decreased by 2.29 tons to 946.27 tons, indicating a reduction in bullish sentiment towards gold [2]. - The total value of gold ETF holdings on April 25 was approximately $99.68 billion, down from about $101.07 billion on April 24 [2]. Group 3: Trade Tensions and Economic Indicators - Recent indications show that China is considering removing high tariffs on certain U.S. imports, which may alleviate trade tensions and positively impact gold prices [2]. - The U.S. dollar index has risen, contributing to increased costs for non-U.S. buyers of gold, thereby exerting downward pressure on gold prices [3].