Hong Hao: The plunge in gold and silver prices was triggered by a liquidity crisis due to high leverage; the long-term bull market trend will continue.

Hong Hao published an article analyzing the recent decline in gold and silver prices. He believes the root cause of the plunge lies in the large-scale stop-loss and liquidation triggered by the CME margin rule adjustment, stemming from a liquidity crisis and short-term pricing distortion caused by a stampede of highly leveraged funds. This is 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, with core factors such as geopolitical conflicts, the US's $40 trillion debt burden, the global trend of de-dollarization, continued central bank gold purchases, and the rigid industrial demand for silver remaining unchanged. This plunge is a phase of deleveraging and technical correction within a long-term bull market, not the end of the bull market. Once leverage returns to a reasonable level, prices will re-anchor to fundamentals, and the long-term bull market will continue.