$XAU
What caused the sharp drop in gold and silver prices in just a few minutes?
1. Liquidation of large positions and triggering of stop-loss orders. When these orders are triggered consecutively, a rapid sell-off occurs.
2. Algorithmic selling (trading bots) after important technical support levels are broken. The systems sell automatically.
3. A sudden rise in the dollar or bond yields, which puts direct pressure on gold and silver.
4. Re-pricing of interest rate cut expectations, meaning the market quickly changes its outlook regarding the Federal Reserve's decisions.
When all these factors combine, a strong and sudden sell-off occurs, wiping out billions (and sometimes trillions) of market value in a very short time.