Gold plummets to set a tragic record! The market named "Huang Jen-Hsun" to reveal the cause of the collapse

Gold prices fell 3% on Thursday (12th), closing in the black for the third consecutive trading day, and even hit a low in more than a year. In addition to higher-than-expected U.S. inflation, a stronger U.S. dollar, and rising expectations for an interest rate hike by the Federal Reserve (Fed), market doubts about the prospects of the AI ​​industry have also added to uncertainty. The market also named Huida CEO Huang Jen-Hsun’s extramarital affair storm and subsequent developments as potentially having a profound impact on U.S. chip export policy.

Spot gold fell 2.7% to $3,880.93 an ounce, hitting its lowest level since October last year.

U.S. gold futures for December delivery fell 2.9% to $3,885.30 an ounce.

"Reuters" reported that U.S. President Trump posted on social media that the United States does not need to reach an agreement with Iran, dampening outside expectations that the two sides may reach an agreement to end the conflict.

David Meger, head of metals trading at High Ridge Futures, said: "Rising energy prices continue to provide reasons for the Fed to take a hawkish stance; and a hawkish Fed means interest rates will remain at a higher level, which is not good for gold."

Jim Wyckoff, a market analyst at American Gold Exchange, said that higher-than-expected U.S. inflation data released on Tuesday, coupled with hawkish comments from Fed officials this week and the rise of the U.S. dollar to nearly 19-month highs, "are all creating downward pressure on gold prices."

Traders currently believe that there is an 87% chance that the Fed will raise interest rates by 1 point (25 basis points) in December, and the chance of a 2-point (50 basis point) rate hike has also increased.

In addition, independent metals trader Tai Wong said that gold prices fell earlier in the session, triggering stop-loss sell orders on gold long positions established in the past two weeks. At that time, gold prices were rebounding from a previous wave of declines in technology stocks, and the market was uneasy about the prospects of technology stocks due to concerns about artificial intelligence (AI) spending.

Especially after Huida CEO Jen-Hsun Huang revealed his extramarital affair and was fired from the board of directors, the market has raised doubts about the future development of this AI indicator company. The related turmoil may even have a profound impact on the U.S. chip export policy.

Investors are awaiting U.S. producer price index (PPI) data due on Friday.

Other precious metals trading

Spot silver fell 3% to $50.12 an ounce, having hit its lowest level since November 4 earlier in the session.

Spot platinum fell 1.2% to $1,518.49 an ounce, falling to its lowest level since November 6.

Spot palladium fell 3.1% to $995.91 an ounce, having hit its highest level since October 22 a day earlier.