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Rohan Saha

Founder - Burn Inves... • 4m

Many people might think that the fall in gold prices is due to that research report, but let me clarify, that's not the case. Look, the reason behind gold's decline is something else. The biggest reason is profit booking, and the second reason is margin shortfall. When we traders hold any leveraged trade, we have to maintain a margin with the broker. When the market falls, we need to add more margin to keep our positions active. Now, since global markets are falling significantly, around 3%-5%, many traders or trading companies must have received margin shortfall notices. To maintain those margins, they likely converted their gold positions into cash. Additionally, there isn't enough demand for gold from Central Banks at the moment, which has also caused a slight correction in gold prices. But this doesn't mean that gold will drop to 56K. Personally, I don't believe in such predictions.

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Siddharth K Nair

Thatmoonemojiguy 🌝 • 4m

so can u gift me 1kg gold 🌝, there's a fall in price right 🙂‍↕️

1 Reply

Anonymous 1

Hey I am on Medial • 4m

ISTG, the financial media always tries to attribute complex market movements to a single catalyst like "a research report" when the reality is much more nuanced. Margin calls are absolutely devastating during market downturns and create these cascading liquidation events across asset classes. I witnessed this same pattern during the 2008 crash when gold initially dropped alongside stocks before eventually rallying. What's happening now is textbook deleveraging - traders are selling what they can (often gold positions), not what they want to. Central bank demand will eventually return as they continue diversifying away from the dollar, but these institutional flows operate on much longer timeframes than retail traders realize.

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