BTS
02-01

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。。。

Warsh Takes Over the Fed! Can Gold Safeguard $5000?

@Tiger_comments：
The precious metals market has been wilder than crypto these past two days. $XAU/USD(XAUUSD.FOREX)$ saw a nearly $500 intraday swing on Thursday, crashing from a record high of $5,596 to $5,105, then somehow bouncing back $300. At one point, minute-by-minute moves exceeded $100. $XAG/USD(XAGUSD.FOREX)$ joined the chaos too, with an intraday drop of over $10 at its worst. Today, gold is down another 6%, breaking key support levels and plunging back toward $5,000 in a flash. CME has already raised margin requirements, and the warning light is flashing: liquidity is drying up. Kevin Warsh is Coming! Stronger USD = Weaker Gold Trump announces his pick for the next Fed Chair - Kevin Warsh. So why is the market so scared? Warsh is widely known as a hardline hawk. He has openly criticized the current Fed for mishandling inflation and has pushed back against QE (quantitative easing). Rate-cut expectations could evaporate, and the liquidity tide could retreat fast. ⚠️ Cathie Wood: “The Bubble Isn’t AI — It’s Gold.” ARK Invest’s Cathie Wood just issued a warning: Gold-to-M2 ratio is at its highest level since the Great Depression (1934). In her view, this parabolic move may be near the end of its cycle — and if the dollar regains strength, it could pop the gold bubble. Her shock call: Gold could drop as much as 60% in a full unwind. UBS Still Bullish… But Catching the Knife Looks Dangerous UBS still sees gold reaching $6,200 this year — but with liquidity drying up and the risk of a hawkish Fed Chair looming, the short-term risk of “catching a falling knife” is extremely high. 💬 Community question In this wave, are you holding the long or hitting the short? ✅ Bulls: “UBS is right — this is just a technical pullback. $6,200 is still the target.” ❌ Bears: “Cathie called it — Warsh = the end of gold. The bubble is about to burst.” Can gold defend the $5,000 level? Or is the real flush only getting started? Leave your comments to win tiger coins~
Warsh Takes Over the Fed! Can Gold Safeguard $5000?

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  • DrewStrong
    ·02-02 10:07
    Bullish on UBS' take, gold will bounce back strong! [看涨]
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