Last week, gold hit a historic high, but this Monday, it experienced a rapid correction, with spot gold falling to around $4,300 per ounce. It looks quite alarming, but don’t rush to judge a trend reversal—this is more like a technical adjustment after an overheated sentiment.

**Why is it falling in the short term?**

Liquidity was already tight before the holiday, making it easier for funds to concentrate on profit-taking. Plus, the recent gains over the past few months have been substantial, and the entire market needs a correction to digest these gains. The US dollar also rebounded slightly, creating temporary pressure on gold. These are all short-term disturbances.

**But has the medium- to long-term logic changed? No.**

The market consensus remains—the Federal Reserve is highly likely to shift to an easing cycle next year. Political uncertainty is also rising, fueling concerns about central bank independence. Safe-haven sentiment hasn't disappeared; it has just shifted from "chasing highs" to "waiting for a correction."

**Implications for the crypto market**

In the short term, safe-haven funds may retreat, causing volatility in both gold and Bitcoin. But if you look further ahead: once monetary policy truly loosens, gold and Bitcoin are not competitors but beneficiaries of the same trend. Gold is the traditional safe haven, while Bitcoin is a new safe-haven asset; they are just taking turns performing.

This correction in gold is less a bad signal and more about making room for the next trend. The main theme remains clear—**expectations of easing combined with rising uncertainty**. Don’t be scared by daily K-line movements; what you should understand is the logic, not the chart.