JUST IN: $3.15 trillion wiped out from gold and silver's market cap in the past 24 hours.
What Caused the "Precious Metals Massacre"?
The "Warsh Effect": The primary catalyst was the nomination of Kevin Warsh as Fed Chair. Markets reacted to his preference for a "smaller Fed balance sheet," which historically strengthens the US Dollar and undercuts non-yielding assets like gold.
Tech Rout Spillover: A massive crash in Microsoft shares (down 12%) and other AI megacaps triggered a liquidity dash. Investors were forced to liquidate their "safe haven" gold and silver positions to cover margin calls in the equity markets.
Reduced "Fear Premium": A bipartisan deal in the U.S. averted a government shutdown, removing a major pillar of political uncertainty that had been driving the "Sell America" trade into metals.
Profit-Taking: After a 20%+ monthly surge for gold and a massive 60%+ rise for silver in January alone, the market was severely overextended.
