Leverage Liquidation Triggers Metals "Deep Squat," Metal Market Awaits Thorough Washout of Speculative Positions

Odaily News: Michael Brown, a strategist at Pepperstone, stated that the sharp decline in the metals market that began last Friday continued into the Asian session on Monday, with gold, silver, and copper all experiencing significant drops. He pointed out that, similar to the previous rally, the current correction also exhibits characteristics of being "too sharp and too fast." He added that the market is likely on the verge of a so-called "dead cat bounce." However, from a long-term perspective, the bullish logic remains solid: demand from central banks and the retail sector remains healthy, and for investors seeking geopolitical hedging, precious metals will continue to be the preferred choice over the US dollar or US Treasury bonds. The key going forward is whether the market's froth has been sufficiently squeezed out and whether speculative positions have been cleaned up, allowing fundamentals to once again dominate price movements. (Jin10)