Gold and silver prices fell sharply during late trading hours. As of 10:50 p.m., spot gold had dropped sharply, breaking below the $4,740 per ounce level, down 1.8% for the day. Spot silver declined more than 3%, trading at $77.2 per ounce.

Meanwhile, international oil prices turned positive, with NYMEX crude futures rising 0.5% to $87.88 per barrel. Brent crude futures increased approximately 0.4% to $95.8 per barrel.

A prominent economist pointed out that gold still holds long-term allocation value. Against the backdrop of global fiscal expansion and pressure on monetary credibility, gold remains an important tool for hedging against currency devaluation risks.

The economist stated that, in the long run, one might buy gold at a high price, but it is not a mistaken investment. The economist personally maintains a gold allocation.

However, the recent significant drop in gold can be partly explained by Middle Eastern nations needing to sell portions of their reserves to support daily fiscal expenditures, social welfare, and subsequent infrastructure development and post-conflict reconstruction. This process may take some time, suggesting that short-term pressure on gold is likely not a matter of just one or two days, and investors should be prepared.

On the other hand, some governments are relying on fiscal spending to maintain employment and growth, leading to increasingly large fiscal deficits, which is ultimately unsustainable. U.S. Treasury bonds have already shown signs of a liquidity crisis, although the Iran crisis has temporarily overshadowed this issue. The recent situation regarding U.S. debt issuance appears less than optimistic. Ultimately, central banks may become the primary purchasers.

Consequently, potential "misconduct" by overseas central banks leading to currency devaluation could persist for the next 20 to 30 years. Gold stands as the optimal instrument for hedging against currency devaluation resulting from central bank actions.