Silver plummeted 18% in the market, and gold also dropped sharply by 8%. The precious metals sector experienced an epic correction, with most gold and silver concept stocks likely hitting the limit down in one go on Monday. Such extreme movements truly make people break out in cold sweat. Previously, the rise of precious metals was outrageous; now, the decline is equally sudden and unexpected, confirming the market's iron law: when everyone is unanimously optimistic, it is the moment when risks arrive.

Just a few days ago, institutions collectively bullish on precious metals: Morgan Stanley raised its gold target to $10,000, the World Gold Council said the gold gap continues to widen, and UBS conservatively estimated that gold would reach $6,200. Now, all of these have been heavily hit by the market, leaving everyone stunned.

The core reason for this plunge in precious metals points directly to the appointment of the Federal Reserve Chair—Trump's nomination of Kevin Warsh as the new Fed Chair. This candidate's views are highly disruptive; he does not believe that U.S. inflation stems from supply chain disruptions or geopolitical conflicts, but rather attributes the root cause to excessive dollar issuance. If he takes office, market expectations of a rapid rate cut by the U.S. will instantly collapse. It’s important to note that this gold and silver bull market is essentially a gamble on the Fed’s rapid rate cuts. When the core logic disappears, it’s only natural for funds to scatter like birds and beasts.

This also confirms a fact: the recent surge in precious metals has nothing to do with fundamentals or supply chains; it is purely a speculative frenzy driven by capital grouping. Looking ahead to the 2026 market, we must be extremely cautious of such group-based speculation. First, regulators have explicitly aimed to curb such hype; second, the end of similar group speculation in history often results in bottomless pits. In these markets, a one-word limit up makes people think they can sleep peacefully, but a one-word limit down leaves no escape. In the end, it’s all just a futile effort with no gains.

Rather than participating in rootless speculation, it’s better to focus on studying the real industrial supply chain. The core conclusion from today’s research in Hangzhou confirms the certainty of the hard industry: the demand gap for computing power far exceeds market expectations. Even if the entire industry works tirelessly over the next three years, supply will still struggle to meet demand. From AIDC to IDC, from optical modules, storage chips, and computing chips to fiber optics, CPUs, and other core hardware links, the entire computing power industry chain is in a state of high prosperity. This is the industry mainline that can withstand scrutiny.

Returning to the market, setting aside the short-term noise of speculation, focusing on the real needs of the hard industry is the most prudent choice right now. #贵金属行情下跌