Recently, precious metals experienced a sharp decline, almost at a "flash crash" level. Ultimately, three factors acted simultaneously: trading rules suddenly tightened, the demand for safe-haven assets diminished, and profit-taking by collective traders increased.

What was the most direct trigger? The world's largest derivatives exchange CME announced adjustments to precious metals futures margin requirements—gold up by about 10%, silver up by about 13.6%.

The numbers may not seem large, but they are deadly for leveraged traders. Previously, you could control a position of 100 dollars with just 10 dollars; now, with the new rules, you need to put in more than 11 dollars. For those with full positions and high leverage, this is essentially a "supply cutoff." To avoid forced liquidation, a large amount of speculative capital rushed to sell before the new regulations took effect, throwing out their positions without hesitation.

Another driving force was the reversal of risk aversion sentiment. Gold is inherently a safe-haven asset—people buy it during wars or risky times to preserve their wealth, and sell it when the situation stabilizes to realize gains. Recently, signals of easing geopolitical tensions have emerged, indicating that safe-haven demand is waning. Without buying support, selling pressure intensified.

Additionally, funds that had already positioned at high levels took profits once they saw gains. These three forces combined, causing prices to plummet rapidly.