Analysis: Gold and silver prices have fallen sharply; low liquidity warrants caution regarding continued volatility.

Silver's strong performance last week undoubtedly made it the focus of attention. Rumors of short squeezes and margin calls triggered Friday's final surge, but that sentiment is now dissipating. Silver prices fell more than $7 during the day, marking the largest single-day nominal drop on record. Precious metals are currently in a sentiment-driven market, with gold also hit by profit-taking today, falling about 4% intraday. Analysts point out that we are currently in a challenging trading environment. Overall market liquidity is generally low, which often leads to abnormally amplified price fluctuations. Hedge funds are unwilling to intervene against the trend to hedge against excessive market movements, and market makers are also limiting their participation. (Jinshi)