Recently, the gold market has been vibrant as global central banks and investors bought gold as a hedge due to tariffs and other uncertainties, causing gold prices to hit new highs. However, on the 29th, gold saw a drop of nearly 1%. Former legislator Tsai Cheng-yuan analyzed the reasons on the program 'Truth or Dare', stating that the decline in gold prices is primarily due to investment institutions selling gold to improve their financial statements. Thus, he assures, 'There will be no increase by the end of April.'

Regarding the recent significant purchases of gold by the People's Bank of China, Tsai mentioned that China's gold accounts for only 6.5% of its foreign exchange reserves, which is quite low compared to the US's 75%, Germany's 74%, and France's 72%. He has been advocating since 2022 for China to increase its gold reserves, but at that time, higher US interest rates deterred accumulation. Had investors followed his advice to buy at $1800 per ounce, they would have seen considerable gains.

Tsai emphasized that after gold prices reached 3500 yuan, a period of consolidation was inevitable, and it indeed fell back to around 3300 yuan. As for the sudden drop, he bluntly stated, 'There’s no secret; it’s simply the end of April. Investment institutions are selling gold to cover losses in stocks, bonds, and foreign exchange.' Thus, he firmly states that prices won't rise as everyone is selling. He concluded that when investment institutions sell through the end of April to improve their accounting, they will continue to buy next month. He predicts that gold prices will likely reach 3400 yuan but advises against short-term trading due to high transaction costs.