Last week, gold indeed dropped to $4300 per ounce, and there were quite a few voices in the market calling for bottom-fishing. This decline was mainly triggered by the CME raising margin requirements for silver futures contracts, causing a wave of panic selling. However, from a longer-term perspective, this is just a normal correction within a bull market.

The story of precious metals is far from over. In the coming months, expectations of rate cuts will continue to dominate the market rhythm, especially in January, when market reactions to central bank policies will be very sensitive. Coupled with the long-term devaluation of the US dollar—the decline of dollar hegemony is a slow process, but the trend is clear—gold, as a traditional safe-haven asset and a potential future currency anchor, still has considerable upside.

Some institutions estimate that, based on the reconstructed logic of the Bretton Woods system, gold could surge to $5000 per ounce by the end of the year.

For individual asset allocation, precious metals are unavoidable. Whether for risk hedging or asset preservation, gold and silver are standard choices. The recent correction at this level is a good opportunity to add positions, as long as you can hold on.