Analysis of Recent Gold and Silver Decline Points to Margin Rule Adjustments

Hong Hao has released an analysis on the recent decline in gold and silver prices. According to Odaily, he attributes the sharp drop to adjustments in CME margin rules, which triggered widespread stop-losses and margin calls. This situation led to a liquidity crisis and short-term pricing distortion, similar to the market logic observed in March 2020, rather than indicating a structural bear market. Hong Hao asserts that the long-term support for gold and silver remains strong. Key factors such as geopolitical conflicts, the pressure of the U.S.'s $40 trillion debt, the global trend of de-dollarization, continuous gold purchases by central banks, and the industrial demand for silver remain unchanged. He describes the recent plunge as a phase of deleveraging and technical correction within a long-term bull market, rather than its end. Once leverage returns to reasonable levels, prices are expected to realign with fundamentals, and the long-term bullish trend is anticipated to continue.