What caused the $6 trillion wipeout in metals?

A stronger US dollar, the Kevin Warsh Fed pick signalling tighter policy, and crowded long positioning combined to trigger forced deleveraging. Margin calls hit futures and ETFs, pushing prices through key levels. Liquidity thinned, correlations rose, and the $6 trillion wipeout spread across gold, silver, miners, and related products.

How might this impact ASX investors on Monday?

Expect wider gaps at the open for gold miners and commodity ETFs, plus higher intraday volatility. The AUD’s move versus USD will influence local earnings sensitivity. After a $6 trillion wipeout, watch ETF discounts, volumes, and options pricing to judge liquidity and whether selling pressure is easing or intensifying.

Is the gold price crash a buy-the-dip moment?

It depends on your risk rules, time horizon, and AUD view. Consider scaling entries, setting hard stops, and pairing with currency hedges. In a $6 trillion wipeout, bounces can be sharp but fragile. Wait for improving liquidity, calmer options skew, and stabilising ETF flows before increasing risk.

What could reverse the silver price plunge?

A softer USD, clarity on Fed policy under the Kevin Warsh Fed pick, and improving liquidity could help. Evidence of value buying in ETFs and tighter futures spreads would support a turn. Without those, the $6 trillion wipeout dynamics can linger as leveraged positions unwind and financing costs stay high.

Global Market Insights

February 02: $6 Trillion Metals Wipeout as Margin Calls Cascade

ByHuzaifa Zahoor February 1, 2026February 1, 2026

A near $6 trillion wipeout in precious metals on Friday turned a sharp selloff into a gold price crash and silver price plunge. The Kevin Warsh Fed pick signalled a more hawkish tilt, boosting the US dollar and triggering margin calls. We break down what this means for Australian investors, including ASX miners, commodity ETFs, and the AUD. With positioning still unwinding, the $6 trillion wipeout could keep volatility high this week. Here is how to prepare without reacting emotionally.