Core Viewpoint - The recent sharp decline in gold prices has led to significant losses for investors, particularly those using leverage, highlighting the risks associated with gold investments and the importance of prudent investment strategies [3][4][5]. Group 1: Market Impact - On June 12, international spot gold prices experienced the largest single-day drop since 2020, plummeting from $2280 to $2165 per ounce, with domestic gold prices also falling [3]. - Over 137 accounts reported losses exceeding 200,000 yuan on that day, with one investor, Lin Wei, recording a loss of 472,000 yuan, making him the largest loser in his trading department [3][4]. - The decline was triggered by a hawkish signal from the Federal Reserve, which caused the dollar index to surge by 2.3%, leading to a corresponding drop in gold prices [3]. Group 2: Investor Behavior - Many new investors entered the gold market during a seven-month price increase, with gold ETF holdings rising by 42% in the first five months of 2023, leading to a perception of gold as a guaranteed investment [5]. - High-leverage investors suffered the most, with reports of clients using 50x leverage losing their entire margin within 15 minutes due to forced liquidation [4]. Group 3: Investment Strategies - Current data shows hedge funds are significantly reducing long positions in gold, while central banks continue to purchase gold, indicating potential volatility in the market [7]. - Experts recommend that investors avoid blindly chasing high prices, use leverage cautiously, and limit gold investments to 15% of their financial assets [8]. - Investors are advised to reassess their holdings, with suggestions to observe key support levels and manage margin accounts carefully [10].