Motong Private Bank: Gold price is a healthy technical correction, looking at $6150 at the end of the year

According to TechFlow, on February 2nd, international gold prices experienced a significant correction. Tang Yuxuan, head of Asia macro strategy at JPMorgan Private Bank, believes that this is a healthy technical correction in gold prices, so the previous uptrend had some irrational elements. However, this adjustment effectively digested some speculative positions. It is worth noting that the gold price has only returned to the level of two weeks ago, still recording a 13% increase in January. Based on past experience, after falling from $4400 to $3900 in October last year, there was a brief consolidation, followed by a breakthrough and an upward trend. By December, it had recovered and returned to its previous high. Therefore, the bank's fundamental view on gold has not changed. Tang Yuxuan stated that according to data from 2025, the proportion of gold reserves held by central banks in emerging markets is still in low double digits, and China is only in high single digits, indicating clear room for catch-up. At the same time, ETF holdings are still below the high levels of 2022-2023. Long term strategic buyers such as central banks, foundations, and endowments provide stable support for gold prices, which is also why the bank has stronger confidence in gold than silver. (Golden Ten)