Gold and Silver plunge was a deleveraging reset not a collapse | Metals Mine

  • Gold and Silver plunge was a deleveraging reset not a collapse

    From fxstreet.com

    Gold and silver’s recent plunge was not a verdict on their role as safe havens. It was a classic deleveraging episode that unfolded within the leveraged layer of the market rather than a structural breakdown in precious metals fundamentals. What looked like a collapse in confidence was in reality a rapid reset driven by volatility, margin dynamics and positioning stress. The speed of the drop and the stabilization that followed are hallmarks of mechanical unwinds rather than long term repricing. The first clue lies in the nature of the move itself. The decline was violent and concentrated in a short window, ... (full story)

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