Core Viewpoint - After reaching a historical high on April 22, international gold prices have experienced a significant decline, with COMEX gold futures dropping to $3,327.60 per ounce, down over $180 from the previous high of $3,509.90 per ounce [1][3]. Group 1: Market Dynamics - Hedge funds have been identified as the primary force driving the recent pullback in gold prices, with a reduction of 1.1196 million ounces in net long positions during the week of April 22, marking the largest cut among asset management institutions [3]. - The selling pressure from hedge funds has intensified since mid-April, as they have adopted a "habitual" trading strategy of selling high and buying low to capture short-term gains [3]. - Despite the recent decline, institutional long-term bullish sentiment towards gold remains unchanged, with a reported inflow of $3.3 billion into the gold market [3]. Group 2: Influencing Factors - The recent changes in market sentiment, influenced by reduced uncertainty regarding the Federal Reserve chairperson and signals from the U.S. government to ease trade tensions, have contributed to a decline in risk aversion, further pressuring gold prices [3]. - Gold exchange-traded funds (ETFs) continue to play a crucial role in supporting gold prices, with accelerated inflows driven by global trade environment changes and increased economic uncertainty, alongside a year-to-date price increase of over 25% [4].