TechFlow News: On February 2, international gold prices experienced a sharp correction. Tang Yuxuan, Head of Asia Macro Strategy at J.P. Morgan Private Bank, views this correction as a healthy technical adjustment, noting that the prior rally contained an element of irrationality and that this pullback has effectively unwound some speculative positions. Notably, gold prices have merely retraced to levels seen two weeks ago, and gold still posted a 13% gain in January. Drawing on historical experience, after gold fell from $4,400 to $3,900 in October last year, it briefly consolidated before breaking higher—by December, it had not only recovered but surpassed its previous peak. Hence, the bank’s fundamental outlook on gold remains unchanged.
Tang Yuxuan added that, according to 2025 data, emerging-market central banks’ gold reserves still account for only low double-digit percentages of their total reserves, while China’s share stands only in the high single digits—indicating significant room for catch-up. Meanwhile, ETF holdings remain below their 2022–2023 highs. Long-term strategic buyers—including central banks, foundations, and endowment funds—continue to provide solid support for gold prices, which is why the bank holds greater confidence in gold than in silver. (Jinshi)
