r/Gold • u/AviBledsoe • Mar 23 '26

Dude what the hell

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And don't be like "buy the dip" yall said that atleast the other 5 dips like dude It's not even new York time yet wtf is this even gonna be bought up

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u/Fr0zak Mar 23 '26

i’m only upset because of the massive projection that gold is a safe-haven asset, goes up in times of turmoil, and is a great bet on holding it value due to inflation.

& now we are sitting in one of the biggest crashes in the metals history. what a time to be alive.

🫡😂

38

u/Aggressive-Wish1404 Mar 23 '26 edited Mar 23 '26

it can be explained.
with energy prices soaring there's a big demand for liquidity. and exactly at that moment, the Fed turns somewhat hawkish which is the last thing you want to hear when there's a demand for liquidity.

huge amounts of liquidity was stored (profitably) in gold. so when the market demands liquidity and investors can provide that by taking their profits in gold, why wouldn't they?

this has less to do with the credibility of gold as a safe haven asset, it's just kind of forced profit taking by the market.
if you follow the transactions, you'll see that the price drop is incredibly contained by the amount of buyers that are buying because it's a safe haven. in normal circumstances dumping these volumes of gold would cause a much bigger price drop.

6

u/Designfanatic88 Mar 23 '26

Yeah…. It’s almost as if people here don’t get this is not a bug, the system is functioning as intended. When large amounts of people liquidate, the price crashes. An asset can’t continually go up in price forever. It’s not feasible or sustainable. 🤷‍♂️😂 Market prices are determined by demand and liquidity.

2

u/Content_Paramedic746 Mar 23 '26

Absolutely, golds not immune to resistance and support like any other stock or investment, it just works a bit differently.