The precious metals market experienced a sharp decline yesterday ("Black Monday"), with the immediate trigger being the news that "Washington was nominated for an important position at the Federal Reserve." He advocates tightening liquidity through balance sheet reduction, which sparked concerns about a potential decrease in dollar liquidity. The US dollar index quickly strengthened, reducing the attractiveness of dollar-denominated gold and silver, leading to a sell-off.

Another direct reason was the tightening of trading rules: the Chicago Mercantile Exchange increased margin requirements for gold and silver futures, requiring investors to put up more capital to maintain their positions. Some leveraged traders were forced to liquidate, further intensifying the downward pressure.
However, behind the sharp decline are deeper structural risks: gold prices had risen too rapidly earlier, with a large concentration of leveraged funds, making the market structure fragile. Once the news broke, algorithmic trading and derivatives mechanisms amplified the sell-off, creating a "long squeeze."
In the long term, the fundamental logic driving gold prices—the US dollar credit risk and the reshaping of the global order—remains unchanged. Therefore, after the sharp drop, precious metals may enter a high-level consolidation phase. After short-term emotional shocks, the medium- to long-term fundamentals will gradually resume their influence.
In simple terms: news catalyst + rule tightening + structural fragility = short-term plunge; the long-term logic remains unchanged, and consolidation may continue$XAU ‌$XAG ‌