Gold Drops 12% as Overleveraged Crypto Positions Force $1B Metals Selloff

When gold nose-dived 12% and silver crashed 33% in just one trading session on Friday, market chatter focused almost entirely on Kevin Warsh’s Fed nomination and a stronger dollar. But that simple narrative misses what actually happened: 79% of the drop had absolutely nothing to do with monetary policy.

Instead, the crash was a mechanical chain reaction waiting to happen. It was set off by three connected forces that hardly anyone is reporting: a massive $1.68 billion wave of cryptocurrency margin calls, regulators quietly raising margin requirements across three continents, and trading algorithms that trapped the…

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