Hong Hao: The plunge in gold and silver is due to a liquidity crisis triggered by high leverage, but the long-term bull market trend continues

According to Odaily, Hong Hao published an article analyzing the recent decline in gold and silver prices. He believes that the root cause of this plunge lies in the CME margin rule adjustment, which triggered large-scale stop-losses and margin calls. This is a liquidity crisis and short-term pricing distortion caused by a stampede of highly leveraged funds, consistent with the market logic of March 2020, and does not indicate a structural bear market.

Hong Hao stated that the long-term support for gold and silver remains solid. The core factors such as geopolitical conflicts, the US's $40 trillion debt pressure, the global trend of de-dollarization, continued gold purchases by central banks, and the rigid industrial demand for silver have not changed. This plunge is a phase of deleveraging and technical correction within a long-term bull market, rather than the end of the bull market. Once leverage returns to reasonable levels, prices will be re-anchored to fundamentals, and the long-term bull market pattern will continue.