Gold price rebound lacks momentum; banks issue warnings on precious metals risks.

As volatility in precious metals intensifies, ICBC and China Everbright Bank issued risk warnings on the same day. On November 2, China Everbright Bank released an announcement stating that domestic and international precious metals prices have recently seen increased volatility and heightened market risk. Investors are advised to pay attention to market changes, raise their risk awareness regarding precious metals business, reasonably control positions, promptly monitor changes in holdings and margin balances, invest rationally, and safeguard their own property safety. Examining the reasons behind this round of gold price declines, the Shenwan Hongyuan macro research team said in a research report that, first, the "spillover effect" of the sharp equity market selloff may be an important driver of gold's weakness since late October reflected first in the dimensions of "volatility spillover" and sentiment shocks: since April, the correlation between gold and U.S. equities has remained at a high level, higher than that with U.S. Treasuries, the dollar, and Brent crude. During the year, the Nasdaq has seen 11 single-day declines of more than 2%, and in 8 of those instances gold prices fell more than 1.7% on the same day. Second, the spillover of equity assets through "liquidity shocks" may also have had some impact on gold price declines. When sharp equity market selloffs cause some institutions to face liquidity shocks, some investors may obtain liquidity through gold collateral leasing or selling gold for cash.