On Friday, the gold and silver markets experienced the most brutal "massacre" since 1980. If you held gold or silver, you might have been insomnia last night. Silver plummeted 31% in a single day, and gold recorded the largest single-day USD decline in history. Why do such volatile swings, more exaggerated than air coins, happen to the most stable precious metals? The answer seems to point to one name: Kevin Warsh.

Trump officially nominated him as the next Federal Reserve Chair. At this point, you might ask: Isn't it just replacing the person giving orders? Why would the market be so scared? We can imagine the Federal Reserve as a butler hosting a party for the owner.
The previous butler, Powell, was more tactful. Everyone thought that even if inflation was high, he would keep the music playing and serve free drinks (cutting interest rates), so people frantically bought gold as a hedge, betting on "currency devaluation."
But Warsh is different. I mentioned in a previous article that he is known in circles as a tight-fisted person. His logic is simple: as long as inflation isn't back to normal, I will cut off water and electricity (raise interest rates/shrink the balance sheet). So, when everyone realizes that this stern-looking person is about to come through the door, what's the first reaction? Withdraw investments.
In the past few months, global funds have flooded into gold and silver, engaging in devaluation trades, betting that the dollar will deteriorate. But as soon as he appears, the USD index soars in place, hitting the largest gain in months. This is like buying a bunch of insurance against accidents, only to find that accidents won't happen, and the huge premiums paid (spreads) naturally become bubbles. But even more strangely: if it's just a change of chairperson, why does copper used in industry also fall? Is this all just retail panic?
Not necessarily. Behind this is not only a reversal of expectations but also a liquidity crunch. Plus, there's an internal "palace coup" happening at the Fed: current Chair Powell is under investigation by the Department of Justice for old renovation debts, claiming political intimidation. Meanwhile, Trump is trying to purge the dovish forces within the Fed. Does this mean the bull market in precious metals is completely over?
Currently, market predictions suggest Warsh won't officially take office until June. Until then, gold still holds at around $4,700. Do you think a strong USD era is really returning? Or is this just Trump's psychological warfare to suppress inflation#贵金属行情下跌