Precious metals and industrial metals this week can be considered as experiencing a sharp rise followed by a pullback. The prices of gold, silver, and copper have cooled down significantly, and the underlying reason points to a key action — regulatory authorities have taken action.

To cool down the overheated market, relevant departments issued a notice to the Shanghai Futures Exchange: to withdraw servers operated by high-frequency traders on the trading floor and to thoroughly crack down on illegal high-frequency trading. This move was quite effective; the main contracts for copper, zinc, aluminum, and other metals on the Shanghai Futures Exchange responded by dropping in price, and the London Metal Exchange also followed suit.

In terms of data, the trading volume on the Shanghai Futures Exchange previously hit a record high, indicating a very hot market. But once the regulators intervened, the heat instantly subsided. This also demonstrates a phenomenon: the trend of bulk commodities is directly influenced by policy adjustments, and market sentiment fluctuations often hinge on a single policy decision.