Multiple institutions: The collective sharp decline in precious metal prices this time is caused by the combined pressure of multiple factors

The decline in sales in the gold and silver markets has led to a significant drop in related stocks. What are the reasons for the sharp decline in international gold and silver prices from historical highs? What is the future trend?

Analyses from multiple institutions suggest that the collective drop in precious metal prices is due to a combination of multiple factors. Recently, signs of easing in international trade tensions and geopolitical conflicts have led to a noticeable increase in investor risk appetite. Additionally, influenced by the political situation in Japan, the weakening of the yen against the dollar has caused the dollar index to strengthen passively, rising to a near one-week high of 98.93 on the 21st, which has also put pressure on precious metal prices. Meanwhile, after a period of significant increases in gold prices, many investors took profit ahead of the release of the U.S. September CPI data this Friday.

Analysts point out that geopolitical changes, increasing global economic uncertainty, the Federal Reserve's interest rate cuts, global central bank gold purchases, and inflows into gold exchange-traded funds (ETFs) have all been important driving factors for the surge in gold prices this year. The latest data released by the World Gold Council shows that in September this year, global physical gold ETFs experienced the strongest monthly performance on record, with total inflows reaching $26 billion in the third quarter, setting a new quarterly inflow peak.

Some market participants believe that currently, the demand for gold investment remains strong, and the shortage of silver spot has not fundamentally eased. Therefore, in the medium to long term, international gold and silver prices are expected to maintain an upward trend