$3,7T Wipeout Hits Gold on Warsh

Gold prices fell hard during the latest trading session as forced liquidations swept through markets that investors often treat as safe havens. According to data shared by market analyst Kovac, gold dropped about 15% in a rapid move, wiping out trillions of dollars in market value. The selloff marked one of the steepest short term declines on record for the precious metal.

The move unfolded quickly. Gold had traded near recent highs before sellers accelerated, pushing prices lower in a near vertical drop on intraday charts. As a result, leveraged positions were flushed out, and liquidity thinned as prices fell. Estimates tied to the move suggest more than $15 trillion in combined value was erased across gold and silver markets, underscoring the scale of the liquidation.

Silver followed the same direction but with greater intensity. Prices plunged roughly 38%, reflecting silver’s higher volatility and deeper exposure to leveraged trading. While gold absorbed most of the nominal value losses, silver’s sharper percentage decline highlighted stress across the broader precious metals complex.

The synchronized drop in gold and silver challenged the idea that these assets always provide shelter during periods of uncertainty. Instead, the session showed how rapid deleveraging and margin calls can override traditional safe haven behavior, at least in the short term. Market participants are now watching whether prices stabilize or if further liquidation pressure emerges in the days ahead.

Gold RSI Stays Weak as XAUUSD Chart Maps Deep Demand Zones

A trading post circulating on X pointed to slowing momentum in gold as XAUUSD held below a falling trendline and under marked resistance bands. The post, shared by a trader using the handle Emily, framed the current move as an unfinished correction and said traders should watch for stabilization signals rather than react to fast swings.

XAUUSD Price Chart. Source: TradingView / X

The attached chart showed spot gold near $5,064, with two resistance zones drawn around the $5,300 area and again closer to the upper $5,500s. Below price, the analyst highlighted multiple demand zones, including one around the high $4,800s to low $4,900s, another near the upper $4,700s, and a deeper band near the mid $4,500s. A projected path on the chart traced repeated rebounds and renewed selloffs before any larger recovery attempt.

Momentum readings on the image stayed soft. The RSI panel at the bottom showed a 14 period RSI near 33.87, below the commonly watched 50 level and near oversold territory. The post argued that a clearer bottom signal would require the RSI to converge and steady as price volatility fades.

The chart also marked a potential downside level around $4,606, implying that another leg lower would still fit within the plotted structure if selling pressure returns. Still, the post presented that level as part of a scenario map, not a confirmed target, while the broader message focused on the risk of whipsaw moves in both directions before the market forms a cleaner base.