Despite a more than 20% pullback from the record highs set last week, the enthusiasm of retail investors for buying gold has intensified against the trend. According to a February 2nd report, the gold trading lounge at the headquarters of Singapore's UOB was bustling with crowds, with numerous investors queuing up at the counters to purchase physical gold. The bank is the only financial institution in Singapore that offers physical gold products to retail clients. 70-year-old retiree Ng Beng Choo, who had been waiting for over six hours after taking a queue number at 9:30 AM, stated:
"Gold prices fell today, so I came to buy."
The selling wave, which lasted until Monday, once pushed the price of gold to around $4,400 per ounce. However, instead of triggering panic selling on the retail side, a significant "buy-the-dip" characteristic emerged. Analysis indicates this reflects the enduring long-term confidence in gold within the retail market. Investors generally believe the core logic driving gold prices higher remains intact: on one hand, policy uncertainty from the U.S. Trump administration persists; on the other hand, investors are still seeking assets to hedge against currency devaluation and sovereign bond risks, with gold's "safe-haven" attributes continuing to be favored. Physical Gold Stores See Buying Frenzy According to media reports, the gold trading area at UOB's headquarters in Singapore experienced unusual crowding. Due to a surge in client demand, the full range of products from the globally renowned bar brand MKS PAMP SA were declared sold out that day, leaving some latecomers unable to purchase physical gold. Notices had been posted around the bank stating:
"Due to overwhelming response, all queue numbers for gold purchases today have been fully allocated. Thank you for your patience."
The report stated that similar scenes were simultaneously playing out in Sydney. Outside the ABC Bullion store near Martin Place, queues stretched from inside the shop out onto the street. A male investor in his 20s who only identified himself as Alex said that despite having "lost a lot" in the market last Friday, he still chose to continue purchasing gold bars, adding that "tomorrow is a new day." Even during periods of sharp gold price fluctuations, some retail investors still view physical gold as a long-term allocation asset rather than a short-term trading instrument. The Market Logic Behind the Plunge Driven by macro factors such as the Trump administration's reshaping of the geopolitical landscape and its pressure on the Federal Reserve, gold's long-term uptrend accelerated significantly last month. However, a sharp reversal occurred last Friday, with selling pressure continuing into this Monday, resulting in a cumulative pullback of over 20% from the previous record high.
Bloomberg data shows that this rapid decline was primarily triggered by institutional traders collectively unwinding previously crowded long positions. In stark contrast, retail investors widely viewed the price correction as a configuration opportunity, leading to a surge in physical gold purchasing demand against the trend in multiple markets. In a report released on Monday, Deutsche Bank reiterated its long-term target of $6,000 per ounce for gold. The report emphasized that the core drivers behind this gold rally—including policy uncertainty, sovereign credit risk, and currency revaluation—have not undergone any substantive change. This assessment also underpins the persistently bullish sentiment among retail investors.
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