Core Viewpoint - Central banks worldwide are aggressively accumulating gold, leading to a historic shift in the monetary system, with global central bank gold reserves surpassing U.S. Treasury holdings for the first time in 30 years [1] Group 1: Gold Price Surge - In October 2025, gold prices soared past $4,300 per ounce, marking the fastest annual increase since 1980, with prices rising from over $3,000 just months earlier [3] - The unusual simultaneous rise of both gold and U.S. stocks reflects a market divided between optimism over tax cuts and concerns over trade protectionism and geopolitical risks [3] - The Federal Reserve's decision to cut interest rates by 25 basis points in September 2025, due to weakening economic data, has decreased the attractiveness of dollar assets and lowered the opportunity cost of holding gold [3] Group 2: Global Risk Factors - By October 2025, global risk aversion peaked due to multiple crises, including the U.S. government shutdown and escalating conflicts in the Middle East, driving strong demand for safe-haven assets like gold [5] - The U.S. federal debt surpassed $35 trillion, with a debt-to-GDP ratio of 126.8%, further diminishing the appeal of dollar assets [5] - Central banks adopted a "buy and hold" strategy, with global official gold reserves increasing by 166 tons in Q2 2025, and annual purchases exceeding 1,000 tons from 2022 to 2024 [5][6] Group 3: Central Bank Behavior - The People's Bank of China has increased its gold reserves for 11 consecutive months, reaching 2,303.5 tons by the end of September 2025 [6] - Emerging market central banks are actively converting part of their foreign reserves into physical gold to reduce their exposure to dollar assets [6] - Central banks' gold purchases are strategic, aimed at hedging against dollar credit risks and enhancing their geopolitical influence [6] Group 4: Changing Dynamics of Gold Pricing - The share of the U.S. dollar as a global reserve currency has declined from 71.5% in 2000 to about 55% in Q2 2025, while gold's share in official reserves has risen to 20% [8] - The shift in gold pricing logic has transformed it from an inflation hedge to a core asset for mitigating sovereign credit risks [11] - Major financial institutions have differing forecasts for gold prices, with Goldman Sachs raising its 2026 price target to $4,900 per ounce, while Bank of America predicts $5,000 [12][13]

Group 1 - International gold prices faced slight pressure, ending a two-day rebound, with COMEX gold futures net long positions dropping to 605.91 long tons, the lowest in nearly four quarters [1][2] - London gold spot prices briefly fell below $3,330 per ounce before rebounding, with current prices reported at $3,335.12 per ounce, while COMEX futures were at $3,344.8 per ounce [1] - Gold prices saw a significant drop to $3,255 per ounce last week, marking a one-month low, but rebounded to $3,350 per ounce at the start of this week, with a cumulative increase of 1.96% [1] Group 2 - Market trading sentiment has cooled, with a notable decline in COMEX gold futures net long positions in May and June, totaling 605.91 long tons for Q2 [2] - Sales of American Eagle coins have decreased, with cumulative sales of 102,000 ounces by the end of April, significantly lower than 185,000 ounces in the same period last year [2] - Gold ETFs have shown signs of net outflows, with Asian investors reducing holdings, resulting in a net sell of 4.8 tons in May and two weeks of outflows in June [2] Group 3 - Analysts attribute recent gold price fluctuations to easing geopolitical risks and changing expectations regarding Federal Reserve policies, with a focus on potential interest rate cuts in September [2] - The market anticipates a shift towards betting on Federal Reserve rate cuts in July, supported by strong global central bank gold purchases and concerns over the dollar's credibility [2] - The probability of a rate cut in September has risen to 21.3%, indicating increasing market expectations [2] Group 4 - Since 2025, the pricing logic of gold has shifted, with its monetary attributes returning, viewed as a put option under the current credit currency system [4] - The ongoing cycle of high interest rates, increased government interest expenditures, rising deficits, and declining U.S. Treasury credit is expected to enhance gold's safe-haven value [4] - A report indicates that one in three central banks managing $5 trillion in reserves plans to increase gold holdings in the next 1-2 years, the highest proportion in five years [4]