Guotai Haitong: "The Volcker Moment" is the catalyst for a significant market correction, represented by precious metals, rather than the root cause.

Guotai Hantong Research Report pointed out that last week, the global focus was on the Federal Reserve. Its actions were characterized by one "inaction" and one "action". The "inaction" was that the FOMC paused interest rate cuts, but showed a slightly hawkish stance, leading to adjustments in asset prices. The subsequent "action" was the appointment of a new chairman of the Federal Reserve, causing a significant market adjustment led by precious metals. However, this was only a short-term trigger for market adjustments following excessive speculation, rather than the fundamental reason. Prices of gold and other assets may still find support after the adjustment.