# Trading Reflections: Gold Loss of $300K - My Thoughts

Previously, my posts from "Gold Trilogy" to "Three Questions About Gold or BTC" discussed my process and reasons for building a gold position.

With an average price of over 3,000, I took profit once at 5,300, closing 30% of my gold position.

It reached 4,800 midway, returned to 5,300 after Iran geopolitical tensions, and is now below 4,800.

Equivalent to a $300K drawdown from the peak - a drawdown that hasn't been closed equals a loss.

Here's my reflection on the operation:

**Why exactly did gold fall?**

The risk-off logic from Iran geopolitics to excessive pricing of US inflation concerns still exist.

The difference is US-Iran tensions easing and a stronger US dollar.

The decline these factors bring to gold shouldn't be this significant. If my previous profit-taking on gold was due to FOMO and excessive expectations, this might be a short-term retreat.

My fundamental long-term holding of gold is still based on the existence of disorder logic, which I've discussed before.

Last week, I considered hedging by going long crude oil (also considered shorting silver, details in my precious metals and minor metals trading thesis).

The core rationale is my subsequent judgment on the Strait of Hormuz geopolitics - that the US won't be able to hold out and will conduct an amphibious landing operation.

Gold's current rapid retreat also reflects potential liquidity crisis concerns. As I mentioned before, gold's biggest crisis is a liquidity crisis.

Therefore, if crude oil declines next week, I will go long crude oil USO.M.

Next week, I'll take time to discuss crude oil trading with amphibious landing operations as the expected scenario.