Zong Xiaoli: Gold suddenly plunges sharply. What is the cause? Is this a buying opportunity?

Gold suddenly plunged sharply in today’s early trading. I believe everyone has seen it. This sudden drop came with absolutely no warning, derailing many plans at once. A number of people suffered heavy losses in this wave of selloff, and were shaken out of their positions—leaving everyone extremely annoyed!

As for the reasons, it seems to have a direct connection to what Trump said. People in the market say that although Trump’s remarks were meant to emphasize ending the war, there was an implied indication that the next step would increase the intensity. This immediately made the market worry, which in turn caused gold to drop sharply. Wait… this explanation seems reasonable on the surface, but in reality it’s quite far-fetched, because it directly denies the prior logic behind gold’s rise. Previously, whenever a war broke out, gold would just keep going up, up, up. But now, even just a hint about escalating intensity resulted in gold being scared into a sudden, steep drop. I have to say, it’s really quite remarkable. Could it be that the logic for gold’s rise and fall has already changed—that it has become completely different from before?

For this question, at the moment we can’t answer it; we can only let time tell us. But in any case, gold has indeed shown a wave of downside, and the力度 is not small. So for the next step, we must pay close attention to how gold pulls back, and see how much it will retrace. Only after the pullback demand is released and the price retraces to a reasonable level can we consider getting in at the right time…

So, for now, we still can’t make an exact judgment on gold—we need to patiently keep observing. Once it’s confirmed that gold’s bottom has formed, then we can consider entering and getting onboard. Everyone, be sure to remember this!

As for the U.S. Dollar Index, tonight the key is to watch exactly how high it can rise, because that will affect whether dollar liquidity stays or leaves—and it’s still relatively important, so don’t take it lightly!