Leverage clearing triggers a sharp drop in metal prices; the metals market awaits a complete reshuffling of speculative positions.

Pepperstone strategist Michael Brown stated that the sharp decline in the metals market that began last Friday continued into Monday's Asian trading session, with gold, silver, and copper all experiencing significant drops. He pointed out that, similar to the previous rally, the current correction is characterized by an "overly sharp and rapid decline." He added that the market is likely to see a so-called "dead cat bounce" soon. However, in the long term, the bullish logic remains solid: demand from central banks and retailers remains healthy, and for investors seeking geopolitical hedging, precious metals will remain the preferred choice over the US dollar or US Treasuries. The key going forward is whether the market bubble has been sufficiently deflated and whether speculative positions have been cleared, allowing fundamentals to once again dominate price movements. (Jinshi)