Economist Peter Schiff says gold's steep drop on Oct. 30 points to a short-term liquidity problem that could reach broader markets as early as next week. Spot gold and silver both fell sharply as a technology-led equity selloff hit markets.
Peter Schiff tied gold's Oct. 30 slide to a liquidity problem that he says will likely show up in broader markets perhaps as soon as next week. The economist and longtime gold advocate called the decline in gold and silver ridiculous. He also described it as "an unexpected gift to investors to buy more", according to his post on X.
Gold and silver fall as equities slide
Spot gold fell $141.60, or 3.52%, to about $3,879.90 an ounce in late U.S. trading. Spot silver lost $3.15, or 6.06%, to about $49.02, which widened the gold-silver ratio.
Kitco said the slide came as a technology-led equity selloff triggered liquidation across metals. Kitco added that broader financial-market liquidation was the more immediate influence on gold.
A rough day across markets
The S&P 500 fell 1.8% to 7,580.07, its largest daily decline since June, while the Nasdaq Composite dropped 2.9%. Intel plunged nearly 29% after weak profit guidance.
Macro data added pressure. The Federal Reserve held its benchmark rate at 3.75% to 4.00% on Wednesday, with two policymakers favoring a hike. September's core PCE price index rose to 3.1%, and third-quarter GDP grew at a 3.4% annualized pace.
Schiff points to Senate odds before the midterms
Schiff also connected the market moves to politics. Days before the Nov. 3 midterm elections, he wrote on X that the Democrats' odds of winning the Senate stood at 71%, a new high, and could rise further if stocks crash on Monday.
His reading carries a short deadline. If he is right, the liquidation that hit gold and silver on Friday should spread into equities and other risk assets when markets reopen on Nov. 2. If stocks steady instead, the metals drop will look more like a one-day margin flush than the start of a broader crunch.
Source: Bitcoin News
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