Report: The recent drop in gold prices is significant, but not unprecedented.

Yuxuan Tang of J.P. Morgan Private Bank commented that the recent drop in gold prices appears significant but is not unprecedented. The strategist mentioned that while gold is often seen as a hedge against geopolitical risks, it is common for gold to be sold off along with other assets during periods of deleveraging. With increasing participation of retail investors in the gold market, the current two-way price fluctuations are considered normal. Tang still believes that gold is a diversification tool in investment portfolios, with a low correlation to stocks and bonds over time, and maintains the outlook for gold prices at $6,000-6,300 by the end of the year. Tang added, "If this conflict does not lead to a sustained risk-off environment, coupled with a stronger dollar, investors who feel they 'missed out on the rally' may see this pullback as an opportunity to enter the market." Spot gold rose 0.6% to $4,680.90 per ounce.