Core Viewpoint - The international gold market experienced a dramatic drop, with spot gold falling over 6%, marking the largest single-day decline since April 2013, after reaching a record high of $4,381 per ounce [1][12]. Market Reaction - On October 21, domestic gold prices peaked at 981.44 yuan per gram before plummeting to 918.66 yuan, a drop of over 60 yuan in one night [2][6]. - Social media reflected widespread panic among investors, with many expressing frustration over being "stuck" at high prices [4][10]. Investor Sentiment - Investors displayed varied responses to the sudden drop, with some feeling trapped after chasing high prices, while others adopted a long-term investment strategy [4][10]. - Affected investors reported significant financial losses, with some losing amounts equivalent to the cost of high-end electronics [4][10]. Market Analysis - Analysts suggest that the recent decline is more of a technical adjustment rather than a trend reversal, following a substantial increase in gold prices driven by geopolitical risks and central bank purchases [12][13]. - The gold price had risen over 25% in the past two months and approximately 56% year-to-date, indicating a potential record annual increase since 1979 [12]. Future Outlook - The short-term trajectory of gold prices will depend on two key factors: the Federal Reserve's interest rate decisions and the potential escalation of geopolitical risks [13]. - Regulatory bodies have issued warnings regarding market volatility, advising investors to manage risks and control positions effectively [13].