Group 1 - The international gold market experienced a significant drop on May 12, 2025, with London spot gold prices falling over 2% to a low of $3217.1 per ounce, marking a nearly one-month low [1] - The decline was attributed to multiple negative factors, including geopolitical risks, a strong dollar, and changes in market sentiment [2][3] - The U.S. dollar index rose to 100.63, creating direct pressure on gold prices, while expectations for the Federal Reserve's hawkish stance increased following strong economic indicators [2][3] Group 2 - Geopolitical tensions eased, leading to a decrease in gold's appeal as a safe-haven asset, with funds previously flowing into gold now moving towards riskier assets like stocks [2] - The technical breakdown of key support levels triggered programmatic selling, exacerbating the decline in gold prices [3] - The largest gold ETF saw a reduction in holdings by 5.2 tons, indicating a retreat of speculative funds from the gold market [3] Group 3 - Despite short-term pressures, the long-term investment value of gold remains solid, supported by ongoing central bank purchases and a deepening trend of de-dollarization [3] - In Q1 2025, global central banks net purchased 289 tons of gold, with China's reserves surpassing 2200 tons, highlighting gold's role in stabilizing prices [3] - Goldman Sachs maintains a year-end target price of $3700 for gold, with potential extreme scenarios suggesting prices could reach $4500 [3]