The nomination of Kevin Warsh as Fed Chair has sent shockwaves through the precious metals market, triggering a historic sell-off that forced gold to surrender the $5,000 level

The market is split into two camps following the breach of this psychological floor; bulls argue for a rapid reclaim toward $6,200, while bears insist the Warsh Effect marks the definitive end of the gold rally

UBS maintains that this plunge below $5,000 is a temporary liquidation event before an eventual climb to $6,200; the bank cite long-term global instability as a reason for prices to recover

Cathie Wood and other skeptics view the move as proof that a hawkish Fed will crush the gold bubble; they argue that a stronger dollar and high real rates make previous gains in gold unsustainable

Whether gold can fight back above $5,000 or continues a downward spiral depends on the next steps from the Fed; if tightening accelerates under Warsh, the current flush may only be the beginning of a deeper correction。。。