Gold prices are under short-term pressure, with institutions seeing long-term value in allocation.

Recently, the international gold price has been fluctuating at high levels. The geopolitical situation in the Middle East is heating up, the US dollar index is temporarily strengthening, and some central banks have caused disturbances by selling gold in the short term, putting pressure on the price of gold. The latest data from the World Gold Council shows that global central banks net purchased 19 tons of gold in February, a significant increase from January. Emerging market central banks continue to increase their holdings, while the central banks of Russia and Turkey have become major sellers. Analysts believe that the selling by a few central banks is more tactical in nature and does not change the main trend of global central banks buying gold. In the long-term trend of weakening US dollar credit, the logic of gold as a diversified reserve tool and a hedge against credit remains solid, and the short-term pullback does not change the medium-to-long-term upward trend. After overselling, gold possesses medium-term value for allocation.