Group 1 - The core viewpoint is that gold is experiencing its largest increase since 2018, driven by a restructuring of gold pricing logic, transitioning from a commodity to a financial asset safety attribute [1] - The global trust in the US dollar is declining, leading to a significant rise in the opportunity cost of holding gold despite rising interest rates [1] - Central banks have purchased over 1,000 tons of gold annually from 2022 to 2024, indicating strong demand from central banks, financial institutions, and the public [1] Group 2 - If global central banks increase the proportion of gold in their foreign exchange reserves to 15%, the corresponding demand for gold could reach 5,000 tons, equivalent to one and a half years of global gold supply, which would significantly drive gold prices [1] - In the first half of this year, the demand for gold from the public and global central banks decreased by 20% year-on-year, but financial institutions in Europe and the US are significantly increasing their gold purchases [1] - Financial institutions have recognized that gold has shown characteristics of being insensitive to interest rates by 2025, suggesting a bullish outlook for gold prices as global interest rate cuts progress [1]

Core Viewpoint - The gold market is experiencing its largest increase since 2018, driven by a restructuring of gold pricing logic, with expectations of a long-term bull market for gold [1] Group 1: Factors Driving Gold Prices - The decline in global trust in the US dollar has shifted gold's pricing logic from a commodity to a financial asset, increasing the opportunity cost of holding gold amid rising interest rates [1] - Central banks globally have purchased over 1,000 tons of gold annually from 2022 to 2024, indicating strong demand [1] Group 2: Demand Dynamics - The current main buyers in the global gold market are individuals, financial institutions, and central banks [1] - If central banks increase the proportion of gold in their foreign exchange reserves to 15%, the corresponding demand for gold could reach 5,000 tons, equivalent to one and a half years of global gold supply, significantly impacting gold prices [1] Group 3: Market Trends - In the first half of this year, gold purchasing demand from individuals and central banks decreased by 20% year-on-year, but financial institutions in Europe and the US are significantly increasing their gold purchases [1] - Financial institutions have identified that gold has shown insensitivity to interest rates as of 2025, contributing to their increased interest in gold [1] - With the growing enthusiasm from financial institutions and the ongoing global interest rate cuts, gold prices are expected to continue rising [1]