Bullion's Big Correction: A Healthy Reversal in Gold and Silver Driven by Macro Shocks and Market Mechanics

Gold and silver experienced a significant selloff last week, driven by a combination of macroeconomic shocks and market mechanics. The plunge was triggered by the nomination of Kevin Warsh as the next Federal Reserve Chair, which strengthened the US dollar and raised expectations of higher interest rates. Profit booking and the CME's steep margin hikes also contributed to the sell-off, amplifying the downturn. The correction was necessary to flush out excess leverage and restore market balance.