【MACRO Alert】 The gold price once fell below 2900, with the maximum decline reaching 2% - an in-dept

The international gold price has experienced a sharp decline. According to the latest data, as of the morning of the 26th, London gold once fell below $2,900 per ounce, with the maximum decline reaching 2%; while COMEX gold and Shanghai gold also experienced tenacious adjustments, closing at $2,928.6 per ounce and 678.8 yuan per gram respectively. Such price fluctuations inevitably triggered widespread discussion and heated debate. This wave of sharp fluctuations in gold prices has attracted great attention from the market, and the related "gold price" topic quickly became a hot topic on social media and financial news.

Many investors are therefore keeping a close eye on market dynamics in order to grasp the timing of buying gold jewelry , all of which is closely related to the recent adjustment of gold prices. Despite the recent sharp drop in gold prices, in the long run, gold prices have risen by about 11% since 2025, and the return rate in the past year has been about 42%. In contrast, the S&P 500 US stock index has risen by about 1.5% in 2025 and 17% in the past year. This long-term upward trend reflects the important position of gold as a safe-haven asset in the global economic uncertainty.

However, this behavior often exacerbates market instability, making gold prices more unpredictable. Changes in investor sentiment also have a significant impact on gold prices . When there is uncertainty in the market, investors tend to quickly adjust their portfolios, causing gold prices to fluctuate sharply. The turmoil in the gold market is actually the result of multiple factors. First, the impact of the Federal Reserve's monetary policy on gold prices cannot be underestimated. At the beginning of this year, the Fed's decision to suspend interest rate cuts seemed to temporarily ease market concerns about gold's trend; however, Trump's pressure has once again heated up market expectations for future interest rate cuts.

Uncertainty directly affects investors' confidence and demand for gold. In addition, geopolitical conflicts and global economic uncertainty have also profoundly affected the performance of gold prices. Recently, especially in tense regions, the demand for gold as a safe-haven asset has risen sharply, and central banks in many countries have also increased their purchases of gold. This has driven the rise in gold prices to a certain extent. However, this has also led to increased market volatility, and many investors have engaged in speculative trading in the short term, making gold prices more unstable.

Analysts in and outside the market have great differences on the increasingly volatile gold prices. Some analysts are still optimistic about the gold market and believe that with the support of the macro environment, the bull market in gold can continue. It is believed that in the context of the Federal Reserve's continued possibility of adjusting interest rates and deepening global economic uncertainty, gold's hedging effect on risks will continue to attract a large amount of capital inflows. Citibank recently raised its average gold price forecast for 2025 from $2,800 per ounce to $2,900, showing confidence in the long-term value of gold.

Of course, in the face of the volatile gold market, ordinary consumers need to remain rational when making investment decisions. First of all, it is very important to judge your own investment goals. If it is short-term speculation, it is more likely to be affected by market sentiment and generate greater risks; if it is a long-term investment, you should pay attention to the value of gold as an asset to hedge inflation and risk. Secondly, pay close attention to market information, especially news involving monetary policy and geopolitical dynamics, so as to better grasp the investment opportunity. In addition, with the fluctuation of gold prices, strategies to reduce costs are also particularly important.

Investment experts generally recommend that investors should avoid chasing short-term high returns from gold and instead adopt a more rational and long-term investment strategy. Investors are advised to get exposure to gold through funds such as exchange-traded funds (ETFs) or investing in stocks of gold mining companies, rather than buying physical gold. Funds and stocks are generally more liquid, while investors who own a large amount of physical gold may also need to store the gold somewhere and insure it, adding additional costs.

In short, in the current context of drastic fluctuations in gold prices, investors and consumers should keep a cool head, analyze the market trend and their own needs, and formulate appropriate investment strategies. No matter how gold prices fluctuate, maintaining rational investment and prudent decision-making is the fundamental way to ensure asset security and obtain returns. Investment always has risks, and rationality is always the best amulet.