@davebalogun
Gold dropped from ~$5,600 to ~$4,700, silver from ~$121 to ~$77, with platinum and palladium falling similarly erasing about $7 trillion in precious metals value in under 36 hours.
The trigger was Trump naming Kevin Warsh, a known inflation hawk, as the next Fed chair. Markets had been positioned for rate cuts and a weaker dollar; Warsh signaled the opposite.
The metals rally was heavily leveraged and built on betting against the Fed. When the narrative flipped, traders rushed to exit. Margin hikes and forced liquidations amplified the sell-off, while a strengthening dollar further pressured prices.
Fundamentals didn’t change supply remains tight and demand intact. This was a rapid unwind of a crowded, leveraged trade, not a collapse in underlying value.
0 reply
0 recast
0 reaction