2026-01-07 04:28:49

Recently, the market has staged a big show: gold prices have soared to new highs, while Chinese concept stocks have collectively plunged. What’s behind this stark contrast?

Simply put, traders’ expectations have changed. Initially, everyone was speculating that the Federal Reserve would massively loosen monetary policy to stimulate the economy. But when the economic data was released, it directly slapped the market in the face. The logic has shifted—global risk aversion has increased, central banks are rushing to buy gold, and assets with short-term liquidity are in high demand. Conversely, Chinese concept stocks that rely on liquidity have become the casualties.

The story with gold isn’t complicated. The expectation of rate cuts is no longer as important; the current core drivers are risk aversion and central bank demand. But the problem is, short-term sentiment has been overly inflated, and chasing the high recklessly can lead to getting trapped. The wise approach is to wait for a pullback before taking action.

As for Chinese concept stocks, it’s important to assess the situation. Small coins without real performance support are falling without bottoming out—don’t blindly take the hit. But for truly strong leaders—such as those with solid technology fundamentals and stable cash flow—this kind of sharp decline can be an opportunity to add positions. The key is to keep an eye on the NASDAQ Golden Dragon Index at the 7800 level; if it can’t hold, be cautious.

What’s the next move? When it comes to gold, patience always pays off. For Chinese concept stocks, don’t rush to bottom-fish; let the panic selling finish, then pick the truly discounted good companies.

What do you think? Is it time to buy the dip or cut losses? Between gold and Chinese stocks, which side are you betting on? Share your trading ideas in the comments.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

18 Likes

Reward
18
7
Repost
Share

Comment

0/400

SatoshiChallenger

· 01-08 02:19

Data shows that each time there is a narrative of "central banks aggressively buying gold," the retail investors' win rate for bottom-fishing has never exceeded 42%. Interestingly, similar analyses were made in 2008 and 2020, but both were proven wrong. The irony is that people are still talking about "truly strong leading companies"—just look at the liquidation rate data to understand. Those who wait and see indeed lose less, but they also miss out on real opportunities—that's the nature of the game. Not to criticize, but a look back at history shows that when risk aversion sentiment is high, it's usually the most dangerous entry point.

View OriginalReply0

LonelyAnchorman

· 01-07 18:05

Oh no, it's the same risk-avoidance logic again—gold surges while Chinese concept coins plummet. The old tricks are getting old. Always waiting for the right moment never results in losses; I believe that. I said the same thing last year, but look at what happened. Leading projects are indeed worth copying, but can the 7800 level really hold? It feels more like a psychological price point. Really avoid small-cap coins; I got trapped last time, and now I don't even want to look at them. Can you still chase gold at this price? It feels a bit虚 (uncertain/虚虚). Opportunities in Chinese concept coins are there, but you need to wait until the panic selling is over. Entering now is just buying the dip. Buy the truly hardcore projects during a crash—there's nothing wrong with that in theory; it all depends on who can hold on without cutting. The logic that assets with sufficient liquidity are being chased has indeed changed; market sentiment has shifted. There's no rush to bottom fish; opportunities are always there—it's just a matter of whether you're willing to wait.

View OriginalReply0

GateUser-addcaaf7

· 01-07 09:57

Waiting party really isn't losing out. This time, the gold side looks promising but still needs to wait. The leading Chinese concept stocks have fallen sharply, making it actually a good entry point. Before taking the plunge, you should first ask yourself how many lives you have... Small-cap coins indeed have no bottom line; better to wait until the panic selling is over before acting. The 7800 level is indeed critical; if it breaks, caution is necessary.

View OriginalReply0

NightAirdropper

· 01-07 04:58

Waiting supporters really never lose out, I give in this time.

View OriginalReply0

MetaMisery

· 01-07 04:57

Gold is good, but fearing deep losses when chasing highs, the wait-and-see crowd is forever right --- The leading Chinese concept coins are truly cheap, just worried that 7800 won't hold and it will crash directly --- No matter how good the words are, it still depends on the data. Who dares to hold heavy positions now? --- With such a strong risk aversion sentiment, gold may still rise in the short term, but it feels like the top is in front of us --- I don't touch small coins without performance; those who cut losses all died before bottoming out --- The question is, who knows when the real bottom will come? Instead of guessing the top and bottom, it's better to wait for confirmation --- It's really troublesome if the Nasdaq Golden Dragon can't hold --- Those cutting losses now are forced; the real opportunity probably hasn't arrived yet --- Gold wins big, the crypto circle takes over, and this is the pattern --- Projects with real strength are indeed worth copying, but the premise is that you can withstand further declines

View OriginalReply0

PermabullPete

· 01-07 04:55

I understand the frenzy around gold, but the recent slaughter of Chinese concept coins is really brutal, it feels like another feast for cutting leeks. Waiting for the right moment indeed makes money, but my impatient personality really can't hold back. When leading projects break down, it's often a real opportunity; the key is to have mental preparation. The NASDAQ at 7800 is really a line; once broken, you have to admit defeat. I stopped touching those coins without performance long ago; last time I was pressed to the ground because of greed. Holding gold is enough, it's very stable; Chinese concept coins, on the other hand, feel more like a casino. It mainly depends on whether you can withstand the pullback; I am the kind who can't hold on. The signal from the central bank buying gold is too strong; this won't deceive. Among Chinese concept coins, projects with real technological barriers are indeed tempting at current prices, but the psychological hurdle still needs to be overcome. I'm just waiting for the panic selling to finish; only then will it be the real time to pick up bargains.

View OriginalReply0

NFTRegretter

· 01-07 04:53

In "Gold Rush," Chinese concept coins plummet. Honestly, it's still the central bank bottoming out; we retail investors can only follow the trend and eat the soup. Waiting for the right moment indeed has its advantages, but the problem is whether we can handle the wait mentally. The leading coins are really at bargain prices this time; it all depends on who dares to pick up the knives in the panic sell-off. If 7800 can't hold, I'll directly liquidate all Chinese concept stocks and keep holding gold. This wave of market movement feels a bit sinister, like the central bank is playing us retail investors.

View OriginalReply0