Shenwan Hongyuan Futures: Last night, precious metals declined, with silver experiencing a significant drop.

Precious metals declined, with silver falling more significantly. U.S. tech stocks plummeted, market risk appetite decreased, and under liquidity shocks, precious metals sharply dropped. U.S. non-farm payrolls in January increased by 130,000, far exceeding the expected 70,000; the unemployment rate was 4.3%, lower than the expected 4.4%. After the data was released, expectations for rate cuts cooled, but the U.S. job market overall remains in a cooling trend. The U.S. economy still needs rate cuts for support, and it is expected that the new Federal Reserve chair at the year’s start will resume easing. From a long-term perspective, factors such as de-dollarization, geopolitical risks, and central bank gold purchases have not reversed; China’s central bank has increased gold holdings for the 15th consecutive month. Once the market fully adjusts and new bullish factors accumulate, gold is expected to return to a steady upward trend. Due to silver’s higher volatility compared to gold, and the gold-silver ratio still being relatively low, investors are advised to stay on the sidelines for now. (Shenwan Hongyuan Futures)