Tom Bilyeu

The gold sell-off merely tells you that investors are confident the Fed will hike rates.

Because if they don't and yields turn negative, then gold would thrive and no one would be selling.

So that obviously isn't what's happening.

So all you're witnessing now is confidence that the Fed is going to hike rates due to the war.

Why hold gold when bonds are paying 4%?

Typically, that explanation would make a lot of sense.

It's just that right now, there's evidence that that's not what actually happened.

When gold investors fear a rake height is coming that will destroy gold's value proposition, it produces a very specific kind of selling, a kind that we didn't just see.

Namely, it's orderly.

It's spread out across time zones as traders in London, then New York, then Hong Kong each process the same information and make the same portfolio decision.

And it tends to hit gold specifically, not copper, not aluminum, not silver, and certainly not all of them at once as they are very different value propositions.

But that's not at all how this straight up gold liquidation played out.

What we actually saw went more like this.

Three consecutive days of selling, Wednesday, Thursday, Friday, each day heavier than the last, gold down 4% on Wednesday, another 3.5% on Thursday, another 2% on Friday.

Thursday was the worst day.

The selling in gold started just after midnight Eastern time.

It ran hard until 8 a.m.

Eastern.

During those eight hours, gold dropped as much as 5%.

By the time New York traders sat down at their desks, the damage was already done.