Why did the gold price fall below 5 key levels in one day? Experts say that now is not the right time to buy gold at a low price.

From $4500 to $4100, gold fell below the key level of 5 in one day, dropping back to late November prices last year. Why did gold experience such a large drop? Professor Wan Zhe from Beijing Normal University analyzed that firstly, there was a significant increase in the past half year, with a large amount of profit-taking. After breaking through key points, programmed trading and institutional stop-loss orders concentrated on closing positions, forming a negative feedback loop of "falling more and selling more". Secondly, the expectation of a large interest rate cut by the Federal Reserve has been significantly reduced, and even an increase is not ruled out, leading funds towards the US dollar and other interest-bearing assets. Thirdly, after the rise in oil prices, the market has shifted to worrying about inflation rebound, with monetary policy expectations taking the lead and weakening gold's safe-haven properties. Li Gang, research director of the China Foreign Exchange Investment Research Institute, believes that at the current point in time, it is not suitable to simply understand it as a "bottom-fishing opportunity", but rather as a period for observation and phased deployment. Such a significant single-day drop often signals a stage in which a trend is changing, rather than an adjustment that has already been completed.