GOLD FLASH CRASH: $5,600 to $5,100 in 60 Minutes! (2026 Inflation Crisis)

Gareth Soloway

64,157 views • 5 days ago

Video Summary

Gold and silver experienced dramatic intraday volatility, hitting new all-time highs before a significant sell-off, signaling potential over-leveraging in the market. This volatility, reminiscent of cryptocurrency flushes, suggests that gold and silver are currently being treated more as risk assets than traditional hedges. Meanwhile, oil continues its upward trend, with projections pointing towards $80 a barrel, driven by inflation and supply dynamics. The video also highlights broad inflationary signals across commodities like copper and live cattle, and even a recent uptick in wheat prices, suggesting a potential resurgence of inflation despite Federal Reserve actions.

One particularly striking observation is that gold, traditionally a hedge against inflation, has recently been trading like a speculative risk asset, a shift attributed to underlying economic vulnerabilities and a perceived unsustainable currency trajectory.

Short Highlights

Gold hit highs of 5600 before collapsing to 5100, then stabilizing at 5300, indicating market vulnerability due to over-leveraging.
Silver also showed a topping tail pattern, suggesting sellers are active at record highs.
Oil is projected to head towards $80 a barrel, with its current price lagging behind inflation-adjusted values from a decade ago.
Broad inflationary signals are evident across commodities, with copper reaching new all-time highs and oil up 15% since January.
Live cattle prices are up about 10% since the beginning of the year, and wheat has seen a 7% increase in less than a month.

Key Details

Gold's Dramatic Intraday Move [00:41]

Gold experienced an extreme intraday swing, trading as high as 5600 before plummeting to 5100, and then stabilizing around 5300.
This "crazy doji candle" suggests that while not necessarily a definitive top, the gold market is currently vulnerable, with liquidity and leverage becoming stretched.
The rapid sell-off is likened to massive flushes seen in cryptocurrency due to over-leveraged traders being liquidated.
The move indicates that participants were taking on excessive risk to go long on gold, rather than a lack of demand.
A specific 10-minute candle chart showed gold falling approximately 10% within one hour.
This type of volatility is unusual and unhealthy for gold.

The market for gold is vulnerable right now.

Interpreting Gold and Silver's Moves Amidst Broader Economic Concerns [01:58]

The current price action in gold and silver is seen as a signal of underlying issues within the US, including debt concerns, strained international relations, and Federal Reserve policies.
Gold was purchased as a long-term protection and insurance policy by some investors since 2017-2019, reflecting a sentiment that current economic conditions are unsustainable.
A "measured move" analysis in gold, taking the initial upward measurement from the breakout point, suggests the recent move replicated this pattern, with some extension beyond the target.
The volatility signals are not necessarily indicative of a lack of demand but rather of participants taking on too much risk and leverage.

There's a reason why people like me, and I bought a long time ago in like 2017 to 19. I even bought earlier than that, but a majority was in 2017 to 19 in gold. There was a reason why I was buying the metal, right? It was it was a protection. It was an insurance policy.

Silver's Topping Tail and Risk Asset Behavior [04:10]

Silver exhibits a "topping tail" candlestick pattern, characterized by heavy volume at or near all-time highs, with the candle closing in the lower 25% of its range.
While silver traded above its topping tail level earlier in the day, it has since fallen back below, indicating the pattern's dominance remains intact and suggesting a bearish short-term vibe.
This does not imply a long-term bearish outlook, as the speaker owns significant amounts of both gold and silver.
The chart patterns for gold and silver are currently being treated more like risk assets due to their strong gains, rather than their traditional role as inflation hedges.
The potential for a significant pullback of 20-40% on silver is acknowledged, with a minimum target of $75 projected.

And the charts are what tell me ultimately what to do.

Oil's Upward Trajectory and Inflationary Signals [06:37]

Oil has been a favored play for early 2026, and it has seen a strong move, with expectations of money rotating into the sector.
Despite not being at all-time highs, oil's price has lagged behind inflation adjustments over the past 10-15 years, suggesting it could realistically trade at $100 a barrel if adjusted for inflation.
A more conservative projection places oil heading towards $80 a barrel.
Broader inflationary trends are evident across other commodities such as copper, which has hit new all-time highs, and live cattle, which have seen a significant run.
Wheat prices, despite being down for a long time, are showing an uptick, rising about 7% since the beginning of January.