Galaxy Securities: The current adjustment in gold is more of a change in rhythm rather than a reversal in trend.

The research report from Galaxy Securities of China stated that the consecutive decline in gold prices is not due to a failure of safe-haven assets, but a shift in pricing logic from risk-driven to interest rate-driven. Recently, the price of gold has fallen for eight consecutive trading days, with a weekly decline of over 10%, which appears unusual against the backdrop of escalating geopolitical conflicts. However, fundamentally, it is not a disappearance of safe-haven demand, but a change in the variables that the market prioritizes in pricing. In the past, escalating conflicts often led to fund inflows into gold, but in the current stage, the market is first reacting to inflation and interest rate paths, causing a temporary deviation between gold and geopolitical risks. Short-term pressure does not change the long-term logic, and the price of gold still depends on the rebalancing of interest rates and credit. In the current environment of high oil prices and interest rates, short-term volatility in gold is inevitable. However, from a medium to long-term perspective, central bank gold purchases, diversification of reserves, and geopolitical uncertainties still provide support. Overall, this round of adjustment is more of a change in pace rather than a reversal of trend.