Last night, precious metals dived! Gold and silver have plummeted collectively, how will the market go?

1. Let's look at the data first: how fierce is this plunge?

When I first opened the market software, I was also shocked by the data - as of early trading today, spot gold (London gold spot) was reported at $5,347.86 per ounce, down $89.9, or 1.65%, overnight; Domestic gold T+D was even more ruthless, falling 34.49 yuan/gram, or 2.79%, to 1203.4 yuan/gram in a single day.

Silver fluctuated more violently, with spot silver (London silver spot) falling below the $116 mark to $115.608 per ounce, a single-day drop of 1.70%; Domestic silver T+D pulled back simultaneously, at 29,400 yuan/kg, down 397 yuan, or 1.33%.

What's more noteworthy is that this is not an isolated decline - just a few days ago, gold just stood at $5,100 per ounce, silver broke through the all-time high of $117 per ounce, and completed the "sharp rise and fall" in just a few trading days.

2. Behind the plunge: 3 core logics, not trend reversal

As an investor who has been tracking the precious metals market for many years, I will first conclude that this plunge is a clear sentiment from a high level, not a fundamental reversal of the long-term trend, and there are three core reasons:

1. Profit orders are concentrated and fleeing, and technical pullbacks are inevitable
Previously, the rise of gold and silver has been out of fundamental support - gold has risen from $4,000 to $5,100 in a year, and silver has soared from $60 to $117, behind which is the concentrated influx of leveraged funds and trend funds. When the price hits the historical extreme range, there is no new positive news to take over, and the funds that made profits in the early stage will inevitably "fall into the bag", and the programmatic stop loss of quantitative trading amplifies the decline, forming a short-term stampede effect.
2. Geopolitical risks cool down + policy suppression, and safe-haven funds withdraw
Recently, the international situation has eased in stages, with the Trump administration reaching an agreement with NATO and canceling tariffs on eight European countries, and market concerns about trade conflicts and geopolitical conflicts have dropped sharply, weakening the safe-haven nature of gold. At the same time, CME Group has continuously raised the margin ratio of precious metal futures, with silver alone increasing by 28.6%, which directly inhibits high-leverage speculation and forces some funds to passively reduce their positions.
3. The Fed's policy expectations have been repeated, and the attractiveness of US dollar assets has rebounded
This is the core long-term variable - the US inflation data has fallen but is still resilient, the job market shows no obvious signs of cooling, the market's expectations for the Fed to cut interest rates have been repeatedly postponed, and some institutions even predict that there may be another rate hike this year. For "interest-free assets" such as gold and silver, rising interest rates mean increased holding costs, and funds will naturally flow to bonds, US dollars and other assets with more certain returns, which is also the underlying logic of this round of correction.

3. How should different investors respond? (Don't panic, operate according to the situation)

In the face of a plunge, the most taboo is emotional decision-making - some people panic to cut meat, and some people think about buying the bottom, but it is actually wrong. I have compiled specific strategies according to different investment needs:

1. Long-term asset allocators (5%-10% of allocation): hold calmly and do not need to operate

If you buy gold and silver to diversify the risk of family assets, such as hedging the fluctuations of the stock market and property market, then you don't have to worry about this pullback at all. The core of asset allocation is "long-term holding and smoothing risk", and short-term price fluctuations will not change the safe-haven properties of precious metals, nor will they affect their role in the asset portfolio.

Just like myself, the physical gold and gold ETFs allocated at the end of last year have not moved so far - the long-term trend of central bank gold purchases is still (global central banks will buy 1,313 tons of gold in 2025 and will remain high in 2026), and the medium- and long-term concerns of US dollar credit have not been resolved, which is the key to supporting the long-term value of precious metals.

2. Fixed investment investors: increase positions against the trend and dilute costs

If you are doing fixed investment in precious metals, this plunge is a good thing - the essence of fixed investment is to "buy low and sell high", and falling prices mean lower buying costs. I suggest continuing to invest as originally planned, or even increasing the monthly fixed investment amount by 20%-30% to further dilute the cost, so that you can get more considerable returns when the market rebounds.

Here is a reminder: the funds for fixed investment must be "spare money", and cannot be used for living expenses or emergency funds to avoid being forced to cut meat at a low level due to financial pressure.

3. Short-term speculators: rational stop loss and buy the bottom in batches

If your position is a short-term speculation and the loss has exceeded the tolerance range, then stop the loss decisively - it is recommended to set a risk threshold of 10%-15%, and execute it once triggered, and don't take the chance of "rebounding". However, if the loss is within the threshold and there is no signal of a trend reversal, there is no need to blindly stop the loss to avoid missing the subsequent rebound.

As for buying the bottom, don't "shuttle" - the bottom of the market is never formed once, gold may fluctuate in the range of $5,000-5,200, and silver may pull back to $100-105. The correct approach is to divide the dip buying funds into 3-5 shares, and buy one for every 5%-8% price drop, which not only reduces the risk, but also seizes the opportunity at a low level.

4. Finally, reminder: invest in precious metals, these three principles must not be forgotten

Regardless of the rise and fall of the market, adhering to these three principles can avoid most risks:

1. Position is always more important than timing: do not invest more than 10% of the total household assets in precious metals, silver fluctuates more, and the position is recommended to be controlled within 3%-5%. A reasonable position can keep you in a stable state of mind when you plummet and will not affect your life.
2. Don't touch the varieties you don't understand: physical gold and gold ETFs are suitable for ordinary investors, while gold futures and silver futures have high leverage and high risk.
3. Don't be swayed by emotions to make decisions: Greed chases high when it soars, and fear of cutting meat when it plummets, which is a taboo for investment. After formulating an investment plan, strictly follow the plan and do not be disturbed by market sentiment or other people's views - investment is a long-distance race, and rationality can go far.

end

In fact, the price fluctuation of gold and silver is the norm in the market. This plunge was more like a "bubble squeezing", bringing prices back into a more reasonable range. For ordinary people, instead of dwelling on short-term ups and downs, it is better to see long-term trends and formulate strategies according to their risk tolerance.

Finally, I would like to ask everyone: Have you been affected by the plunge this time? Do you plan to stop loss, hold or buy the dip? Welcome to share your views in the comment area~#金价突破5500美元 #GateLive直播挖矿公测开启