Title: Has gold stopped 'avoiding suspicion'? A 15% plunge in a month—myth shattered or rational return?
They say in troubled times, buying gold is the safest bet. But recently, this idea has hit a snag.
At the end of last month, the U.S. and Israel took action against Iran, and according to the script, gold prices should have soared, right? But what happened?—one month into the conflict, gold actually fell by nearly 15%! You read that correctly; there’s a war, and gold has crashed.
Ultimately, it’s not that gold is failing; it’s that it was previously inflated too much. Before the war, gold prices had already skyrocketed to a level that was hard to resist, the bubble was bigger than a balloon. When the crisis actually hit, there was no strength left to push higher. Speculators rushed to withdraw, and funds turned around to the more appealing bond market with better yields.
What’s more critical is that this round of declines isn’t just affecting retail investors. Central banks from multiple countries have quietly started selling gold reserves— the reason is quite practical: as oil prices rise, import costs surge, central banks need to exchange for dollars and sell gold to free up cash to combat inflation. Even the 'national team' is selling; who still dares to hold on?
So can gold prices rebound? The industry consensus is clear: first, the bubble needs to be squeezed, and a return to fundamentals must occur before there’s an opportunity to hit bottom.
In the end, gold is still gold; it’s just that the market has changed. When safe-haven assets also start 'speculating on expectations and selling facts', do you still dare to blindly chase high prices?
Do you think this round of gold price declines is an opportunity to buy at the bottom, or the beginning of a bubble burst? Let’s chat in the comments.
