$1.28 Trillion Wiped Out as Gold & Silver Crash—Is Lunar New Year Liquidity Driving the Drop?
Gold and silver markets experienced a sharp correction, wiping out $1.28 trillion, potentially driven by Lunar New Year liquidity dips and macro pressures.Summary
Gold and silver markets are undergoing a significant correction, erasing an estimated $1.28 trillion in combined market value after a powerful prior rally. Analysts attribute the pullback to a combination of factors, including profit-taking, macroeconomic pressures that strengthen the US dollar, and seasonal liquidity shifts. Specifically, the Lunar New Year holiday period in Asia is cited as a major driver, as reduced trading activity lowers liquidity and amplifies price movements, particularly for silver, which has fallen nearly 40% from its record high of $121.646. Commodity ETFs also saw declines of 2% to 4%. While macro factors like Federal Reserve signals and geopolitical developments weigh on bullion, technical analysis suggests support levels for silver near $65 and gold near $4,770. Despite the short-term volatility, structural forces like rising global debt suggest a powerful long-term bull market remains possible for precious metals.
(Source：BeInCrypto)