Gold, silver and bitcoin are under severe selling pressure as markets continue to digest the hawkish tone of Federal Reserve Chair Kevin Warsh.
The broad-based decline across non-yielding assets reflects a sharp repricing of rate-hike expectations following Warsh’s first policy meeting press conference, where his communication style triggered immediate volatility.
The selloff in precious metals and digital assets comes on the heels of a severe 1.2% decline in the S&P 500 on Wednesday.
That equity rout accelerated sharply during Warsh’s remarks, marking the worst opening-day performance in recent memory.
The correlation between the equity drop and the current pressure on gold and bitcoin suggests investors are liquidating risk assets and safe havens alike to raise cash or hedge against higher borrowing costs.
Warsh has rapidly established a new, more aggressive posture at the Federal Reserve, a shift that has unsettled market participants accustomed to a more dovish or predictable communication framework.