Gold price plunges: It's not the gold that's bad, it's the 'vehicle' that's too heavy!

Don't just focus on the Fed nomination in today's big drop. That's at most a "spark", the real issue is that the barrel of gunpowder—gold—has been packed too full! 💣

Why such a sharp drop?
In one sentence: too many people crowding in, too few exits. Gold had risen too smoothly before, even to the point where "buying blindly would still make money." When market sentiment is overwhelmingly bullish, this very consistency is the biggest risk.

This isn't manipulation, it's a "systemic stampede."
Stop talking about conspiracy theories; this is a structural issue:

Crowded longs: A lot of money rushed in with leverage.

Chain reaction: A slight price loosening triggered stop-loss orders like dominoes, setting off automated selling.

Profit-taking: Floating profits above 5,500 points were too thick; smart money exited at the first sign of trouble. Those who ran slow footed the bill.

Don't mythologize the impact of the "Fed nomination"
A hawkish nomination is just a "starting gun." The market used this as an excuse to complete a high-level profit-taking massacre. It's not that gold suddenly lost value; it was just too crowded, and now everyone's violently "getting off."

Short-term: Don't rush to catch falling knives. A drop of this magnitude has already hurt market vitality. Short-term, it's likely to be "rebound → pressure → consolidation," with an immediate V-shaped recovery unlikely.

Mid-term: Say goodbye to "mindless gains." The easy ride is over; we're entering a high-difficulty "technical" phase.

Long-term: The story isn't over. Safe-haven demand, de-dollarization, and debt crises—these big narratives haven't disappeared.

This big drop washed away the reckless leverage, leaving behind true conviction. What ended was the "easy ride," not the gold story.