$XAU
🔞 We just witnessed a $10 trillion evaporation event in 24 hours 🚸
This was a liquidation nuke that makes crypto volatility look like T-bills. Gold crashed 11.5% ($600+) and Silver collapsed 32% in a single session. This was a forced execution of the leverage overhang, triggered by the one thing the metal bulls forgot to hedge: Kevin Warsh 🔥
The mechanics were brutal. First, the CME hiked silver margins to ~11% earlier this week to cool the vertical rally, forcing levered longs to sell just to stay in the game. Then, the Warsh announcement spiked the dollar and erased the Fed debasement narrative in minutes 👀
Warsh means a stronger USD and a balance sheet diet, which is kryptonite for the dollar collapse trade that pushed gold to $5,400. The result? A cascade of margin calls that wiped out weeks of gains in hours 👀
Consensus is calling this the top. I call it the flush. The fundamentals—sovereign debt spirals, AI energy demand for silver, and central bank hoarding—haven't changed. What changed is who holds the bag. The tourist leverage is gone, wiped out by the exchange and the White House. The physical buyers (Tether, PBoC, family offices) are now staring at a 30% discount on silver ⚡️
Trade setup: Let the knife fall. The leverage flush isn't over until the forced selling stops. But when the dust settles, the Warsh discount will be the buying opportunity of the year for physical allocators
🚸 Warning 🚸 I do not provide financial advice 🔞The intent of this content is for you to be aware of market conditions before starting to invest 👌Thank you for reading 👌