Gold hits biggest one-day drop in 40 years, market confidence recovers

Market storm: Hawkish Fed nomination triggers asset sell-off

Gold prices fell by more than 3% in Asian trading on Monday, and silver fell by as much as 9%! Panic quickly spread to oil markets and stock index futures. Trump nominated Kevin Warsh, who is known for his hawkish stance, as chairman of the Federal Reserve, shattering market expectations for loose monetary policy and dealing a fatal blow to the bursting of asset bubbles! This violent volatility not only led to a technical collapse, but also heralded the collapse of the market consensus on the future. 💥

Tech crash: Daily declines unprecedented in 40 years

From a technical perspective, the price of gold fell by more than $1,000 last weekend, the largest drop in 40 years! The drop was a catastrophic crash, instantly stranding countless investors who bought at the top of the market hoping to catch the latest rally. 😰

The Dream Fund on-site trading platform has repeatedly warned of the risk of a sharp correction, but the strong market enthusiasm has caused many people to rush to buy. In fact, good exit opportunities emerged in the market on Thursday night and early Friday – a rebound is not only the hope of optimistic investors, but also their window of opportunity to exit!

Key levels and forecasts

The only sign that the bull market is back is for gold to return to the $5,000 level. Otherwise, the downward trend will be difficult to reverse.

📉 Short-term trading strategy:

Main selling position: Use 4800-4900-5000 level as support, stop loss at 10-15 points, and target short-term profit of 1:1 or higher.

Small long position: focus on the early triple top of 4550; this adjustment is expected to reach at least the 4550-4500 range.

Currently, the market is not showing any signs of an uptrend; we expect it to remain in a downtrend this week! At current momentum, the price will soon reach $4,500! ⚠️

Investment tip: Be flexible and adapt to changing markets. Every turning point is an opportunity for mid-term investors to adjust their positions, rather than sticking to the concept of “bull market” or “bear market”. In a rapidly changing market, opportunities can only be effectively captured through a combination of short-term turning points and flexible operations. Once the downward trend continues, the price trend will often exceed everyone’s expectations!

Today’s view is clear: maintain the bearish outlook! The market took advantage of this sharp decline to teach us that after the euphoria, calm must follow. 🎯

Warning: Market volatility is increasing. It is recommended to carefully control position size and stop loss orders. The bull market does not end in one day, and the bear market does not begin in one day, but the destructive power of turning points is often beyond imagination!