02/02/2026 Daily Reports
Historic Metals Crash Triggers Global Volatility as Hawkish Fed Signal and Margin Shock Ripple Across Markets
- Global markets were shaken by a historic sell-off in precious metals, with gold suffering its steepest one-day drop since 1983, sliding toward $4,700, while silver plunged up to 30% in a single session. The collapse was triggered by President Trump’s nomination of Kevin Warsh as the next Federal Reserve Chair, which markets viewed as a strongly hawkish signal. This sparked a sharp rally in the U.S. dollar and aggressive profit-taking across gold and silver.
- The sell-off intensified after CME Group raised margin requirements for gold and silver futures, forcing leveraged investors to unwind positions and causing a broader liquidity shock across asset classes.
- Equity markets felt the spillover. U.S. futures declined, with NASDAQ down around 1.6%, as margin calls pushed investors to sell stocks to cover losses in metals. European markets, including the DAX, opened under pressure, tracking commodity volatility and tech-led weakness from Asia. Japan’s Nikkei 225 was a notable outlier, gaining 0.7%, supported by domestic political stability and polls signaling a strong election victory for Prime Minister Sanae Takaichi’s party. In corporate news, Oracle announced plans to raise up to $50 billion in 2026 to expand cloud infrastructure, keeping focus on long-term tech investment.
- Meanwhile, Brent crude fell more than 3% to around $66–67 per barrel after President Trump said Iran was “seriously talking” with Washington. The comments eased fears of imminent military action, prompting a reassessment of geopolitical risk and reducing the war premium in oil prices.
Account Opening
Open A Live Account
CDO has wide range of tools, professional and friendly support for clients to achieve their financial markets trading goals. Open a live account now to enjoy this experience with virtual deposit.
Historic Metals Crash Triggers Global Volatility as Hawkish Fed Signal and Margin Shock Ripple Across Markets
- Global markets were shaken by a historic sell-off in precious metals, with gold suffering its steepest one-day drop since 1983, sliding toward $4,700, while silver plunged up to 30% in a single session. The collapse was triggered by President Trump’s nomination of Kevin Warsh as the next Federal Reserve Chair, which markets viewed as a strongly hawkish signal. This sparked a sharp rally in the U.S. dollar and aggressive profit-taking across gold and silver.
- The sell-off intensified after CME Group raised margin requirements for gold and silver futures, forcing leveraged investors to unwind positions and causing a broader liquidity shock across asset classes.
- Equity markets felt the spillover. U.S. futures declined, with NASDAQ down around 1.6%, as margin calls pushed investors to sell stocks to cover losses in metals. European markets, including the DAX, opened under pressure, tracking commodity volatility and tech-led weakness from Asia. Japan’s Nikkei 225 was a notable outlier, gaining 0.7%, supported by domestic political stability and polls signaling a strong election victory for Prime Minister Sanae Takaichi’s party. In corporate news, Oracle announced plans to raise up to $50 billion in 2026 to expand cloud infrastructure, keeping focus on long-term tech investment.
- Meanwhile, Brent crude fell more than 3% to around $66–67 per barrel after President Trump said Iran was “seriously talking” with Washington. The comments eased fears of imminent military action, prompting a reassessment of geopolitical risk and reducing the war premium in oil prices.
Forex Mobile & Desktop App
CDO TRADER
CDO TRADER, our cutting-edge trading platform, follows the technology from the forefront with new features added continuously. Moreover, CDO TRADER is now available for Android and iOS! So it allows you to trade on the go!
