The Logic Behind the Sharp Drop in Gold and Silver

This plunge in gold and silver prices was caused by a convergence of several key factors, directly triggering a panic-driven decline in the market.

First is the Federal Reserve's policy expectations. The newly appointed Fed Chair, Powell, is known for his hawkish stance. The market had already sensed signals of tightening policy, leading to an early flight of capital from safe-haven assets like gold and silver. This was the core trigger.

Additionally, gold and silver had risen too sharply earlier. Many investors who entered the market early had already made substantial profits. They took this opportunity to lock in gains as the policy shift occurred, which increased selling pressure and weakened the market.

To make matters worse, exchanges also raised margin requirements. Investors using leverage couldn't withstand the margin pressure and were forced to liquidate their positions passively. This created a vicious cycle of leveraged selling, amplifying the downward momentum.

Finally, the US dollar rebounded during the same period. Since gold and silver are negatively correlated with the dollar, a stronger dollar further reduced their appeal. This rebound added fuel to the decline.

Overall, this appears to be a technical correction driven by sentiment and leverage. The medium-term trend still depends on macro policies and actual interest rate movements. The market is re-pricing, and volatility may continue for some time.
#贵金属行情下跌
#黄金 #白银