Hong Hao: Gold and Silver Plunge Triggered by High Leverage-Induced Liquidity Crisis, Long-Term Bull Market Structure Remains Intact

Odaily News Hong Hao published an article analyzing the recent decline in gold and silver prices. He believes the root cause of this plunge lies in the CME margin rule adjustments triggering massive stop-losses and margin calls. This constitutes a liquidity crisis and short-term pricing distortion triggered by a stampede of highly leveraged funds, consistent with the market logic of March 2020, and is not a structural bear market.

Hong Hao stated that the long-term support for gold and silver remains solid. Core logics such as geopolitical conflicts, the pressure from the US's $40 trillion debt, the global trend of de-dollarization, continued central bank gold purchases, and the rigid industrial demand for silver remain unchanged. This plunge represents a phase of deleveraging purification and technical correction within a long-term bull market, not the end of the bull market. Once leverage returns to reasonable levels, prices will re-anchor to fundamentals, and the long-term bull market structure will continue.