Gold & Silver Just Had The "Mother Of All" Washouts! What Happens Next? | Ed Steer

Ed Steer argues the recent gold and silver selloff is not a bullish-cycle break but another extreme leg in the long-running “wash, rinse, and spin” pattern that has repeatedly allowed commercial shorts to cover. His core message is that the latest washout may have reset positioning rather than damaged the underlying bull case, with historically strong COT readings still pointing to upside potential in both metals. He highlights unusually aggressive call-option bets, including speculative positioning targeting $10,000 to $20,000 gold by December, which he frames as a sign that the market is still pricing a major repricing rather than a cyclical top. He also flags continued discussion around a possible gold-backed Treasury bond as a potential catalyst for a broader revaluation narrative. For traders, the message is that the tape damage may be more about derivatives-driven liquidation than fundamental weakness. Near-term risk remains that the market can stay volatile and oversold after a sharp washout, but the medium-term setup he describes is still bullish if positioning pressure eases and revaluation chatter gains traction.