Core Viewpoint - The global precious metals market experienced significant declines, with COMEX gold futures and London gold spot prices dropping over 5%, and London silver spot prices falling more than 7% on October 21 [1] Volatility and Market Reactions - The rapid increase in the short-term volatility index has prompted risk warnings from various exchanges and futures institutions, with the GVZ index rising by 20.87% on October 16, reaching a new high since April [2][4] - The GVZ index continued to rise, indicating heightened market volatility and increased risk expectations, with a notable spike on October 16 that pushed it above 30, signaling potential price fluctuations in gold [4][5] - The Shanghai Gold Exchange issued risk warnings, advising members to enhance risk awareness and maintain market stability amid significant price volatility [4][5] Market Performance and Stock Reactions - Despite a rise in London gold prices earlier in October, stocks of companies like Zijin Mining and Shandong Gold showed a divergence, indicating a cautious attitude among secondary market investors [2][9] - As of October 20, the London gold price had increased by approximately 10% for the month, while Zijin Mining's stock rose only 1.05%, reflecting a broader trend of gold stocks not keeping pace with gold price increases [10] - The Wind precious metals index experienced a maximum drawdown of about 16.37% from mid-October highs, with some stocks like Hengbang Shares and Shandong Gold seeing drawdowns exceeding 20% [10][11] Long-term Outlook - Despite recent short-term declines, the precious metals market is viewed as being in a long-term bull market, with the decline of the US dollar's credibility serving as a core foundation for strategic allocation in precious metals [8][11] - If gold and silver prices rise again but stocks like Zijin Mining and Shandong Gold do not follow suit, it may indicate a nearing cyclical peak in the market [11]