GREY BRIEFING #25: After the rally, reality sets in – gold holds its ground, silver undergoes a brutal correction

Stock markets remain relatively stable at the index level, but beneath the surface there have been violent movements, particularly in precious metals and cryptocurrencies. Political signals from the US, the nomination of Kevin Warsh as the future Fed chair (detailed assessment here), the latest FOMC meeting without an interest rate cut, and the government shutdown that has been ongoing since Saturday are shaping the market environment. Together with extreme positioning in individual asset classes and geopolitical issues, these factors are causing rapid changes in direction and an overall more fragile market. WEEKLY PERFORMANCE – INDICES Over a five-day period, the picture was significantly weaker and more defensive overall than individual intraday movements would suggest. The Nasdaq 100 lost around -0.9% and...