View: Precious Metals to Experience a "Dead Cat Bounce" After Major Drop, Long-Term Bullish Thesis Still Intact

BlockBeats News, February 2nd. Pepperstone strategist Michael Brown stated that the sharp decline in precious metals that began last Friday continued into the Asian session on Monday, with gold, silver, and copper all experiencing significant losses. Similar to the previous rapid surge, the current correction also exhibits the characteristic of being "too sharp and too fast." The market is likely to see a so-called "dead cat bounce." However, the long-term bullish thesis remains intact: central bank demand and retail interest in precious metals remain healthy, and for investors seeking geopolitical hedging, precious metals will still be preferred over the dollar or US Treasury bonds. The key going forward is whether the market bubble has been sufficiently deflated and speculative positions have been cleared out, allowing fundamentals to once again drive price action.