Bulls and bears meet on a narrow path, intense competition in the precious metals market

Recently, the international precious metals market has been volatile, with gold and silver quickly rebounding after a sharp decline. London spot gold once returned to USD 5,000/ounce, but on February 5, it plummeted again, briefly falling below the USD 4,800/ounce mark. London spot silver has experienced even more dramatic fluctuations, with a single-day intraday drop exceeding 30% and a subsequent rise of over 10%. On February 5, London silver experienced a sharp decline, dropping more than 17% during the session, although the decline later narrowed. Such significant ups and downs highlight the extreme uncertainty currently present in the precious metals sector. Many market participants believe that the "Wash Trade" logic driving this round of movements has not yet been fully digested, and gold and silver prices have not stabilized, with downside risks still present, placing the market in a state of intense competition. Currently, the differences in strategies and investment narratives between short-term and long-term investors further outline the structural characteristics of the current market. (Shanghai Securities Journal)