Group 1 - The price of spot gold rose sharply on the afternoon of the 7th, approaching the $3400 mark, with an increase of over 0.8% during the day, while COMEX gold also saw an increase of over 0.9%, closing at $3378.56 per ounce [1] - As of the end of July, China's gold reserves reached 73.96 million ounces (approximately 2300.41 tons), reflecting a month-on-month increase of 60,000 ounces (approximately 1.86 tons), marking the ninth consecutive month of gold accumulation [3] - The expectation of a Federal Reserve interest rate cut, coupled with weak U.S. non-farm data and geopolitical risks, has provided support for gold prices [3] Group 2 - The Shanghai Futures Exchange's gold inventory has surged to a historical high of 36 tons, nearly doubling from the previous month, indicating active trading in the futures market and strong demand for arbitrage trading [3] - Citigroup, known for its bearish stance on gold, has shifted to a bullish outlook, raising its three-month gold price forecast from $3300 per ounce to $3500 per ounce, and adjusting its expected trading range from $3100-$3500 to $3300-$3600 per ounce [3]

Core Viewpoint - Precious metals experienced a sudden surge in prices, driven by expectations of interest rate cuts by the Federal Reserve, weak U.S. non-farm data, and geopolitical risks, providing strong support for gold [7]. Price Movements - As of 15:38, NYMEX palladium rose by 1.73%, NYMEX platinum increased by 1.72%, spot silver expanded its gains to 1%, and spot gold rose approximately 0.8% to $3395 per ounce [3][4]. - COMEX gold was reported at $3466 per ounce, reflecting a 0.73% increase [5]. Market Demand - The World Gold Council reported that global gold demand surged to $132 billion in Q2 2025, with total demand reaching 1249 tons, a 3% year-on-year increase [7]. - The demand value increased significantly by 45% year-on-year, setting a new historical high [7]. Investment Trends - Gold ETF investments were a key driver of total gold demand, with inflows of 170 tons in Q2 2025, contrasting with outflows in the same period of 2024 [9]. - The total demand for gold bars and coins rose by 11% to 307 tons, with Chinese demand increasing by 44% to 115 tons [9]. Supply Dynamics - Global gold supply increased by 3% to 1249 tons, with mine production reaching a historical high in Q2 2025 [7]. - Central banks continued to purchase gold, adding 166 tons in Q2 2025, although the pace of purchases has slowed [9]. Jewelry Demand - Global gold jewelry consumption declined by 14% year-on-year in Q2 2025, nearing 2020's low levels, despite a rise in value to $36 billion [10]. - In China, gold jewelry demand fell to 69 tons, a 20% year-on-year decrease, marking the weakest performance for Q2 since 2007 [10]. Market Outlook - The strong performance of gold in the first half of 2025 suggests potential price stability in the second half, although macroeconomic uncertainties may provide further support for gold prices [8]. - The high-end jewelry market remains robust, driven by emerging brands, while traditional retail faces challenges due to declining consumer demand [12].

Core Viewpoint - Precious metals experienced a sudden surge in prices on August 7, driven by expectations of interest rate cuts from the Federal Reserve, weak U.S. non-farm data, and geopolitical risks, providing strong support for gold [1][5]. Price Movements - As of 15:38, NYMEX palladium rose by 1.73%, NYMEX platinum increased by 1.72%, spot silver expanded its gains to 1%, and spot gold rose approximately 0.8%, reaching $3,395 per ounce, while COMEX gold was reported at $3,466 per ounce, up 0.73% [3][5]. - The London gold price was reported at $3,395.67, reflecting a gain of 0.80% from the previous close [4]. Market Demand and Supply - The World Gold Council reported that global gold demand surged to $132 billion in Q2 2025, with total demand reaching 1,249 tons, a year-on-year increase of 3%. In value terms, this represented a significant 45% increase compared to the previous year, setting a new historical high [6]. - Gold supply also saw a slight increase, with mine production reaching a historical high in Q2, resulting in a total supply growth of 3% to 1,249 tons. Recycled gold supply grew by 4% year-on-year but remained relatively subdued in the context of high gold prices [6]. Market Sentiment - Citigroup, known for its bearish stance on gold, has shifted to a bullish outlook, raising its three-month gold price forecast from $3,300 per ounce to $3,500 per ounce, and adjusting the expected trading range from $3,100-$3,500 to $3,300-$3,600 [6]. - The strong investment activity in the first half of 2025 highlighted gold's role as a hedge against economic and geopolitical risks, with gold prices increasing by 26% over the same period, outperforming most mainstream asset classes [6].