Markets Crash: Gold’s Worst Day Since 1983, BTC Dives, Fed Jitters Hit Equities

0:05Welcome back boys and gals. Listen, I know the price action over the weekend was brutal, so I hope you spent it away from the charts. Now that we're back at it, we've got you covered. Andreas Steno and Mikkel Rosenwald have the usual Monday double for you with a pro report and macro Mondays for everyone. And if that wasn't enough, Andreas is back in the evening with Alexander Campbell for Alpha to talk about precious metals. Plus, Chris Bullock will take your crypto chart requests in Discord as usual. Of course, you also have me, Palvatar, delivering you the latest market news roundup. If you're wondering what the real Raoul is thinking right now, look no further than the notes section on the Real Vision website.

0:47You can read insights from a GMI piece that Raoul wrote over the weekend. After all, I'm only his AI copy, so don't take what I say as his words. Notes are such a treasure trove of alpha. Check out the latest one from Jamie Cootes as well, while you're at it. So here's where we are as I gather these thoughts around lunchtime European time. A dramatic plunge in gold and silver prices has rattled global markets, making for an uneasy backdrop as Wall Street prepared to open. Gold is down again after falling some 9 % on Friday, its worst one-day drop since 1983. The move in silver was even more dramatic.

1:28It cratered 27%, the most on record. It was down again this morning, as was copper. Oil fell 5 % from multi-month highs after an easing of tensions between the US and Iran The moves, coupled with a strengthening US dollar, stem from profit-taking and President Trump's nomination of Kevin Walsh as Fed Chair which has dampened expectations for aggressive monetary easing CME Group has hiked margin requirements for metal futures, which come into effect after today's close There's also another US government shutdown to contend with, which officially started on Saturday, but could end as early as tomorrow.

2:09Disney managed to provide some cheer with an earnings beat before the bell. Asian stocks have been hammered today, with COSPI closing 5 % lower. Japan will hold an election for the lower house this coming Sunday, with polls pointing to a potential landslide victory by Prime Minister Sanae Takechi's party. In China, the official manufacturing PMI was released yesterday, showing a disappointing reading of 49.3 in January, indicating continued contraction in the manufacturing sector. This was a significant miss after expectations for another expansion, which is a reading above 50. It also diverges from Rating Dog China manufacturing PMI, which is more export-focused.

2:54That reading increased to 50.3 from 50.1, in line with expectations and highlighting an ongoing trend of strong exports but weak domestic demand. In Europe, stocks have planted green shoots of recovery after falling at the open. The sentiment has been helped by Germany's retail sales, which rose by 0.1%, confounding forecasts of a decline. Additionally, the HCOP manufacturing PMI for the Eurozone improved slightly to 49.5, but still indicates contraction, reflecting persistent weaknesses in new orders and output across several member states. France was the bright spot for a change, with its PMI reading rising to 51.2 in January, the highest in nearly four years.

3:41Elsewhere on the continent, the S &P Global Manufacturing PMI for the UK rose to its highest level since August 2024 at 51.8. The closely watched ISM Manufacturing PMI for the US is also out today. Crypto has another tough weekend behind it, with Bitcoin losing the 80s all the way down to$74 ,000 in Asian trading, its lowest since 2024. Decrypt cites coin glass data that shows some$5.5 billion in liquidation since Thursday. Bitcoin has since rebounded to around$78 ,000 as the US trading began. The block reports CoinShares data, which shows global crypto investment products, suffered$1.7 billion in net outflows last week, flipping year-to-date results to net minus$1 billion.

4:33One potential catalyst for crypto is regulation, which is why the White House is set to host talks between banks and the crypto industry today to advance the stalled market structure bill. Speaking of the White House, the Wall Street Journal says a UAE-linked entity bought a 49 % stake in World Liberty Financial, the crypto firm tied to the Trump family, raising ethics concerns. In other news, Ripple has announced it received a full EU e-money institution license in Luxembourg. And Bitcoin has started to move its tokens around after it announced it would purchase$1 billion in Bitcoin for its user security fund.

5:15Last but not least, a 30 % tax on crypto remains firmly in place in India, despite hopes the latest budget might change it. Okay, a busy start to the week, so hold on to your hats, keep listening to Real Vision, and I will see you tomorrow.

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