Gold prices experienced a significant 9% drop last week, marking the steepest decline since 2013, following China's decision to impose stricter margin requirements on leveraged gold trading. This regulatory move led to widespread sell-offs, causing gold to fall from its previous peak of nearly $5,091 per troy ounce. The sell-off resulted in substantial market outflows, particularly affecting Chinese gold ETFs, which saw exits amounting to 980 million yuan. US Treasury Secretary Scott Bessent described the crash as a "classical, speculative blowoff," highlighting the volatility induced by regulatory changes in one of the world's largest gold markets. The incident underscores potential instability in precious metals markets, despite China's continued high demand, and signals broader financial implications as dollar strength pressures commodities. While the gold market faces these challenges, cryptocurrencies remain unaffected by the developments.