XAG/USD: Silver Plummets Another 12% as Crashing Prices Keep Hammering Long Bets

Gold erased another 10% as the precious metals market continued to pull back aggressively after skyrocketing for days.

🩸 Longs Meet the Woodchipper

• Silver (XAG/USD) is getting absolutely steamrolled. Prices plunged another 12% Monday morning, extending last week’s meltdown and turning what was a euphoric breakout into a full-blown liquidation event. Long bets are being force-closed and many are getting their accounts wiped out.
• From a record near $120 to around $71, silver has dropped roughly 42% in less than three days. That is not a pullback, that is a historical unwind. The last time silver moved like this was in 1980 when disco was still alive.

🔄 Gold Joins the Freefall Club

• Gold (XAU/USD) followed silver lower, shedding another 10% earlier today and extending its three-day washout to more than 21%, or over $1,100 per ounce. Prices crashed toward $4,400 after peaking at $5,600. That erased tens of trillions in market value.
• The rally that felt unstoppable last week is now unwinding faster than almost anyone expected. What looked like a safe haven is behaving like a leveraged momentum trade gone wrong.

💵 Dollar’s Comeback

• A firmer US dollar is adding pressure. The dollar index has gained about 0.8% since Thursday, making dollar-priced metals more expensive for global buyers and reducing their appeal.
• Rate expectations also flipped. Optimism around cuts ran into fresh uncertainty after Trump nominated Kevin Warsh as the next Fed chair. Warsh is seen as favoring tighter policy, which supports the dollar and hurts non-yielding assets like gold and silver.
• Official story aside, many traders are calling this a rug pull. What is clear is that volatility has taken control, and the easy money phase is over.