Last night, the precious metals market fell quite sharply, with gold dropping more than 8% in one go, and silver also falling over 7%, leaving many people feeling anxious. Although there are rumors online that it's due to the potential ceasefire between Russia and Ukraine, a closer look at the data shows that the probability of a ceasefire this year is actually very low, making that claim untenable. The real reason may be that the previous surge was too strong, and the market was due for a correction anyway. Additionally, many funds took the opportunity to sell at high levels, triggering this rapid decline. Moreover, the upcoming dialogue between China and the U.S., along with the end of India's gold buying season, has also slightly cooled market sentiment. However, this sharp drop seems more like a 'bubble squeeze' for an overheated market. In the long run, if the macro environment remains unstable, the allocation value of gold and silver still exists. Therefore, a sharp decline isn't necessarily a bad thing; it might just be preparing for the next wave of market movements.
