Gold crashes 21%!!!

For the past few years, gold has been riding a seemingly never-ending trend, and recently silver has decided to join the race, and both of these assets made headlines across the world because of how well they were performing.

This run came to a sudden end on the 29th of January when a daily candle created a massive wick on both assets, and this was followed by a huge drop where silver fell approximately 41%, and gold fell around 21% which marked a really historic drop. A drop this big hasnt been seen in years, and to be very honest it was the only outcome that made sense for both assets.

Since silver broke out of its very long range around September 2025, it has been making headlines with its rallies constantly on a weekly basis, gold has been making headlines for even longer, every time it reaches a milestone everyone talks about it. So, with these two assets constantly going higher with zero resistance, there was a huge influx of buyers coming in and rarely any sellers. This meant that if the buys were to get liquidated (Positions get stopped out or closed) there would be so much volume lost that the market would instantaneously fall without breaks.

And that is exactly what we saw happen on the 30th of January.

The oldest way to identify a trend and still the most accurate, is by looking for higher highs and higher lows, or lower highs and lower lows. But, if there are only higher highs and barely any higher lows, then the market isnt rallying naturally.

I do believe that over the span of many years, silver and gold would have surpassed the value they are now, but it would need to be a more natural trend, instead of something like what we have seen recently, because it gets dangerous really fast and a lot of people that thought they were going to be making a lot of money, were suddenly on the losing side of it.

Remember, the most important part of managing risk is setting your stop loss, so next time you want to partake in a trend like this, make sure to set your stop loss so you dont lose everything.

My expectation for silver and gold would be to retest the highs and then to trend down or consolidate for the next few months. There is realistically nothing else that should happen.