On the evening of December 12 local time, Gold and Silver experienced a sudden drop.

By the close, the COMEX Gold Futures main contract fell by 1.7% to $2709.4 per ounce; the COMEX Silver Futures main contract dropped by 4.1% to $31.619 per ounce.

In the A-shares in Hk market, the Gold and Precious Metals Sector experienced significant declines. A-share Beijing Xiaocheng Technology Stock and Hunan Silver fell over 3%, Hunan Gold Corporation dropped by 2.22%, while Chifeng Jilong Gold Mining, Zhongjin Gold Corp.,Ltd, SiChuan Gold, and Western Region Gold fell by over 1%.

In the Hong Kong stock market, ZHAOJIN MINING, LINGBAO GOLD, and Zijin Mining Group fell by over 2%, while SD GOLD dropped by 1.88%.

Previously, data released by the U.S. Bureau of Labor Statistics showed that the November PPI report exceeded expectations, with a month-on-month increase of 0.4%, the largest rise since June; year-on-year increase of 3%, the highest level since the beginning of 2023; core PPI increased by 0.2% month-on-month, and increased by 3.4% year-on-year.

World Gold Council: Growth in the Gold Market May Slow Down in 2025.

The World Gold Council's report released on the 12th, "2025 Gold Outlook," pointed out that in 2024, due to market fluctuations and rising geopolitical risks, gold is expected to fulfill its role as a hedge, with gold prices likely to achieve their best annual performance in over a decade.

After strong increases in recent years, growth in the gold market may slow down in 2025, but there remains some upward potential.

According to the report, gold prices have increased by more than 30% since 2024, but the increase next year may be affected by variables such as economic growth and inflation. At the same time, a potential trade war during Trump's second term and a complex interest rate outlook may impact economic growth, harming demand from investors and consumers.

All eyes are focused on the USA. Trump's second term may boost the local economy but could also lead to considerable anxiety among global investors.

The report noted that potential upward factors for gold prices in 2025 include: central bank demand exceeding expectations and a sharp deterioration in the financial environment, which could trigger safe-haven sentiment among investors, pushing gold prices higher.

However, the Asian market remains a core area for global gold demand, with more than 60% of annual demand, excluding central banks, coming from Asia, particularly China and India.

Taking China as an example, so far Chinese investors have provided support for prices, while the Consumer remains watchful. However, these dynamics depend on the direct (and indirect) impacts of trade, economic stimulus, and risk perception.

Looking at India, the country's gold demand is supported by multiple Bullish factors. Especially in the second half of this year, India announced a reduction in the gold import tax from 15% to 6%, stimulating gold demand. In addition, India's economic growth rate has remained above 6.5%, providing a solid foundation for gold consumption demand.

Future trends have become the focus of the market.

Gold reserves have always been an important component of reserve diversification for countries around the world.

Since the beginning of this year, Global central banks andOTCMarket demand is strong, pushing gold prices to continuously rise and reach new heights. On December 5th, data from the World Gold Council showed that the net purchases of gold by central banks in October were 60 tons, reaching a single-month peak for 2024.

The recently updated official reserve assets data from our central bank shows that, as of the end of November, gold reserves stood at 72.96 million ounces, an increase of 0.16 million ounces compared to 72.8 million ounces at the end of October. Previously, the central bank had suspended its Shareholding in gold for six consecutive months.

Regarding the central bank's decision to restart its Shareholding of Gold reserves, industry experts point out that given the recent drop in gold prices, our country's central bank buying in at low prices and moderately increasing its Gold reserves aligns with the overall trend.

From a global perspective, there is still significant room for improvement in the proportion of Gold reserves in our country. From the standpoint of continuously optimizing international reserve structures and cautiously promoting the internationalization of the renminbi, the future strategy of the central bank to increase its Gold holdings remains the general direction.

At the same time, UBS Group also predicts that gold prices will rise to 2,900 dollars by the end of next year, echoing Goldman Sachs' expectations of further increases in gold prices, as central banks around the world continue to increase their Gold reserves.

Due to the strengthening dollar and market concerns over the potential for further U.S. fiscal stimulus to lead to rising interest rates, gold prices may go through a period of consolidation before rising again. They expect gold to further increase to 2,950 dollars by the end of 2026.

As one of the strongest-performing commodities in 2024, gold has set multiple historical highs this year, but it has seen a pullback due to a stronger dollar following the U.S. elections.

UBS points out in its analysis that official sectors typically purchase physical gold bars and are expected to continue increasing their reserves for diversification and in response to geopolitical tensions and sanction risks, as the proportion of many central banks' Gold reserves in total Assets remains quite small.