In late September, the gold market ushered in a round of rapid market correction. International spot gold has continued to decline since above 4,400 US dollars/ounce in mid-September. It once fell below 4110 US dollars/ounce in the intraday session on September 28, and the intraday decline was nearly 4%. On September 29, the price of bank savings accounts in China fell below the 900 yuan/gram integer mark, a cumulative correction of more than 5% from around 950 yuan/gram in mid-September. Regarding the core reason for the rapid decline in gold prices in this round, Li Gang, research director of the China Foreign Exchange Investment Research Institute, said that the main reason is that the market's expectations of “higher interest rates will last longer” are heating up again, rising energy prices have re-strengthened concerns about inflation, and the strengthening of US bond yields and the US dollar have raised the opportunity cost of holding gold. At the same time, gold had a large increase before, and profit markets concentrated on cashing out after negative factors appeared, which also amplified the short-term adjustment. In response to the trend of gold prices around the National Day, Li Gang believes that there is still a possibility that gold will decline further, but it is necessary to distinguish between “trend reversal” and “high level adjustment.” If US inflation and employment data continue to be strong, or oil prices rise further, gold may still be under pressure in the short term, and there may even be relatively obvious technical adjustments. However, at present, the long-term support factors for gold have not disappeared. For the time being, it is more appropriate to understand this round of market conditions as high valuation revisions and capital rebalancing, rather than the end of the long-term bull market logic.

In late September, the gold market ushered in a round of rapid market correction. International spot gold has continued to decline since above 4,400 US dollars/ounce in mid-September. It once fell below 4110 US dollars/ounce in the intraday session on September 28, and the intraday decline was nearly 4%. On September 29, the price of bank savings accounts in China fell below the 900 yuan/gram integer mark, a cumulative correction of more than 5% from around 950 yuan/gram in mid-September. Regarding the core reason for the rapid decline in gold prices in this round, Li Gang, research director of the China Foreign Exchange Investment Research Institute, said that the main reason is that the market's expectations of “higher interest rates will last longer” are heating up again, rising energy prices have re-strengthened concerns about inflation, and the strengthening of US bond yields and the US dollar have raised the opportunity cost of holding gold. At the same time, gold had a large increase before, and profit markets concentrated on cashing out after negative factors appeared, which also amplified the short-term adjustment. In response to the trend of gold prices around the National Day, Li Gang believes that there is still a possibility that gold will decline further, but it is necessary to distinguish between “trend reversal” and “high level adjustment.” If US inflation and employment data continue to be strong, or oil prices rise further, gold may still be under pressure in the short term, and there may even be relatively obvious technical adjustments. However, at present, the long-term support factors for gold have not disappeared. For the time being, it is more appropriate to understand this round of market conditions as high valuation revisions and capital rebalancing, rather than the end of the long-term bull market logic.