Cathie Wood Calls Gold Top as Markets Unwind $9 Trillion Across Assets

ARK Invest founder Cathie Wood suggests that gold's recent surge signals a late-cycle bubble, noting that gold's market capitalization relative to US money supply (M2) hit an all-time high, surpassing 1980 and 1934 levels. She warned that a potential dollar upturn could puncture gold's rally. This commentary followed a period of extreme market volatility where approximately $9 trillion in market capitalization swung across metals and equities within hours. Gold fell about 8% before recovering significantly, a move attributed by analysts to forced liquidations and margin calls stemming from highly leveraged and crowded trades in gold and silver, which were initially triggered by a sharp drop in Microsoft shares. However, some macro traders dispute Wood's analysis, arguing that M2 has lost informational value in a post-Quantitative Easing financial system.

(Source：BeInCrypto)