"After a record-breaking rally both gold and silver have been clobbered in the last couple of trading days as the parabolic rally collapsed on itself. Silver is about -8% this morning and down ~36% from its peak at around $78, having hit a low just above $71 overnight. Gold is -5% and ~17% from its all-time high hit last week at around $4,620 this morning, having touched a low at $4,398 before attracting some bid."
"Bitcoin is also trading lower around the $76k mark with likely some forced selling due in particular to the silver blow up. Copper is down around 4% this morning with prices ~15% below last week's highs. Things just go too frothy - this was like crypto markets at their worst; a massively crowded and leveraged long bet, and volatility that fed on itself as market makers couldn't quote prices, leaving liquidity an issue."
"The level of volatility remains elevated, though we are seeing some bid come back into the market as of this morning, as a sign that we could be past the worst of the danger - I'd be surprised if we see the kind of move that happened on Friday again. Fundamentals haven't really changed since last week, but the speed and scale of the selloff was a warning shot to one-way bets."
Gold and silver experienced a sharp reversal, with silver falling about 8% on the morning and roughly 36% from its peak near $78, touching just above $71, while gold dropped about 5% and roughly 17% from its recent all-time high near $4,620, dipping to $4,398 before finding bids. Bitcoin fell toward $76k amid likely forced selling tied to the silver collapse. Copper declined roughly 4%, about 15% below last week's highs. The selloff reflected crowded, leveraged long positions, ETF and options unwinds, and a stronger dollar after Kevin Warsh's Fed nomination, creating liquidity stress and spillovers into miners and equities.
Read at London Business News | Londonlovesbusiness.com
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