Core Viewpoint - The gold market is experiencing downward pressure due to a combination of factors, including increased supply, reduced demand for safe-haven assets, and competition from virtual currencies [1][4][5]. Price Trends - As of August 21, the price of gold in the Shanghai Gold Exchange was 771.83 CNY per gram, a slight increase from the previous day's closing price of 770.24 CNY per gram [1]. - London gold prices were reported at 3344.34 USD per ounce, down 2.41 USD from the previous day, reflecting a decline of 0.07% [1]. - Compared to the peak earlier in the year, both international and domestic gold prices have shown a downward trend, with London gold prices dropping over 55 USD per ounce in two weeks and Shanghai gold prices decreasing over 46 CNY per gram since April [4]. Market Dynamics - The decline in gold prices is attributed to a reduction in demand for safe-haven assets due to easing geopolitical tensions, leading to lower investment in gold [4][5]. - The rise of virtual currencies, perceived as stable alternatives to gold, is diverting investment away from the gold market, further pressuring gold prices [5][6]. - Concentrated selling by gold holders facing liquidity pressures has exacerbated the downward trend in gold prices, disrupting the supply-demand balance [5]. Future Outlook - Short-term predictions indicate that gold prices may continue to face downward pressure, although the extent of the decline is expected to be limited [6]. - In the medium to long term, the overall trend for gold prices remains positive, supported by the global monetary system's shift towards lower interest rates, which may provide upward momentum for gold [6].