Cathie Wood Warns of Gold Bubble as $9 Trillion Market Reversal Rattles Metals
Gold's valuation against U.S. money supply (M2) has reached historic extremes, surpassing even 1934 and 1980 levels. ARK Invest CEO Cathie Wood flagged the metal's 'out of line' pricing, noting its market-cap-to-M2 ratio hit record highs. 'Odds are high that the gold price is heading for a fall,' she warned on X.
The $9 trillion intraday swing saw gold drop 8% and silver 12% before sharp recoveries. CME responded with a 47% margin hike on gold futures as Leveraged positions unwound. Wood compared current conditions to the inflation crisis of 1980, when rates soared to mid-teens percentages.
This volatility underscores growing divergence between precious metals and macroeconomic fundamentals. The event triggered cross-asset tremors, with equities and cryptocurrencies also experiencing whipsaw action during the 6.5-hour frenzy.
