Gold suddenly plunges! Some get liquidated, others smile and buy more, who is the real winner?

The gold market on May 18th looked just like a large reality show.
On one side is the “pain mask” after the bulls get liquidated, on the other side is the excited expression of institutional funds “buying more as it falls.”
After spot gold broke below $4,500, the market instantly entered panic mode.
Many retail investors began to doubt life: “Aren’t we supposed to buy gold in chaotic times? Why is gold itself going chaotic?”
Actually, this wave of correction was not unexpected.
Gold has risen too fast this year.
Eventually, the market is no longer investing, but “chasing myths.”
And any myth, once it rises too quickly, needs a cold shower.
But interestingly, every time gold crashes hard, the same storyline unfolds:
Retail investors frantically exit;
Central banks continue to buy;
Institutions secretly pick up the goods.
Because true big funds know that the core value of gold is not “a tool for making money,” but “risk insurance.”
Especially now, the global situation remains complex, with unresolved U.S. debt issues and ongoing geopolitical risks.
As long as these variables exist, gold can never be completely out of favor.
Technically, currently $4,500 is a key dividing line.
If it recovers in the next few days, it’s likely to form a “golden pit.”
What is a golden pit?
It’s when you think the trend is over, but in fact, the trend is just beginning.
Of course, short-term volatility will likely intensify.
Because market sentiment has already become extreme.
Some shout “gold collapse,” others shout “gold bottoming,” both bulls and bears are frantically pushing their narratives.
And what the market loves most is harvesting emotions amid this chaos.
My view is that: gold still has a chance to rebound before the end of May, especially if the Federal Reserve signals a dovish stance, making a strong recovery in gold very likely.
Right now, the gold market is like bungee jumping.
It looks dangerous, but those who truly understand know there’s a rope underneath. #Polymarket每日热点