Economic Daily: Gold has become a risky asset According to a report by Golden Finance on May 20th, as international gold prices fluctuate sharply between historical highs, gold has transformed from a traditional safe haven asset to one of the most volatile risk assets in the world. At the same time, there are significant differences in international institutions' expectations for the trend of gold prices. Why is gold no longer a safe haven? There are three root causes. Firstly, transactions are extremely crowded. Secondly, the transmission path of liquidity shocks has changed. When assets experience a general decline, investors face pressure to add margin, and gold, due to its excellent liquidity, becomes a priority asset to be sold for cash. A large number of stop loss orders and quantitative selling trigger a negative feedback of "falling selling falling again". Thirdly, 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 itself. The supporting factors for the sustained rise in gold prices are constantly loosening, and the suppressing forces have gathered in secret. Due to the significant increase in international gold prices previously, there is a possibility that they may fall too much in the future. In the medium to long term, the price of gold will eventually fall below $4000 per ounce in order to maintain stability at a reasonable level. The fluctuation of international gold prices will inevitably have an impact on domestic gold prices, therefore, it is necessary to enhance risk awareness. (Golden Ten)