BlockBeats News, May 20th. The Economic Daily published an article stating that as the international gold price has experienced intense volatility at historical highs, gold has transformed from a traditional safe-haven asset to one of the world's most volatile risk assets. At the same time, there is a significant divergence in international institutions' expectations for the price of gold. Why is gold no longer a safe haven? There are three root causes.

First, trading is extremely crowded.

Second, the transmission path of liquidity shocks has changed. When assets experience a general decline, investors face additional margin call pressures. Due to gold's excellent liquidity, it has instead become an asset to be sold off first to obtain cash, triggering a large number of stop-loss orders and quantified sell-offs, leading to a negative feedback loop of "price drop - sell-off - further price drop."

Third, there has been a fundamental shift in pricing logic. The correlation between gold and interest rates has returned to a high level.

In short, gold is no longer a safe haven tool but a risk in itself. The supportive factors for the continuous rise in the gold price are gradually weakening, and the forces of suppression are quietly gathering. Due to the significant previous surge in the international gold price, there is also the possibility of an overshoot to the downside in the future. From a medium- to long-term perspective, the gold price will eventually fall below $4,000 per ounce and only stabilize at a reasonable price level. The movement of the international gold price will inevitably affect the domestic gold price, so it is essential to enhance risk awareness.