The precious metals market experienced a massive contraction during trading today, March 19th, with gold and silver wiping approximately $912 billion from their total value in just three hours.
this fall Gold minus $715 billion, silver minus $196 billion Responding to rising expectations regarding the monetary policy of the US Federal Reserve (FED) (calculated by CriptoNoticias based on market capitalization and asset prices).
During this period, gold prices declined by 2.25%, falling from $4,715 to $4,609 per ounce, breaking through technical support at $4,700. Meanwhile, silver recorded a decline of 4.88%, falling from $71.50 to $68.01 per ounce.
Bearish momentum has increased since gold reached an all-time high of $5,600 on January 29, with losses of nearly $1,000 per ounce accumulated since then.
In this context, the price of Bitcoin (BTC) also fell, at one point trading below $70,000. reflects a common sensitivity to the US macroeconomic scenario.
Interest rates and inflationary pressures
The main impetus for this movement is the restrained attitude of the financial authorities of the United States, the world’s major financial power. Jerome Powell Fed Chairman Yesterday, it warned that interest rates would remain at 3.75% year-on-year.. “If they don’t see progress in the economy, they won’t cut rates,” the official said.
Powell also warned that he would not cut interest rates unless the economy showed clear signs of progress in fighting inflation, CriptoNoticias reported. The decision came after learning that U.S. wholesale inflation rose 3.9% year over year in February 2026, which was not only higher than the 3.7% market consensus had expected, but also accelerated compared to January’s revised 3.5%.
When interest rates remain high, investors often move to bonds such as government bonds, which offer guaranteed yields and are more attractive than physically holding metals. Additionally, higher interest rates tend to strengthen the dollar, making gold more expensive to acquire for buyers using other currencies and reducing overall demand.
In this scenario, economist Peter Schiff said gold and silver would fall again as investors realize rising inflation will eliminate the possibility of a rate cut. In Schiff’s view, the market has failed to properly assess long-term risks. “But what the market doesn’t understand is that as long as the Fed continues to hold interest rates steady, inflation will skyrocket. By the time the Fed takes action, even 6% interest rates won’t be enough to control inflation.”
Geopolitical conflicts and asset markets
Uncertainty is further heightened by the escalation of the Middle East war that began on February 28, affecting the energy infrastructure of Iran and Qatar. Such events traditionally boost safe-haven assets, but the rise in oil prices to $112 a barrel has had the opposite effect, raising expectations that inflation will persist.
All of this is putting pressure on metals and Bitcoin, which are generally considered “risky” assets. Its price has fallen from $75,884 on Monday, March 16th.up to $69,433 on the day.
According to influencer and trader David Battaglia, gold is repeating the pattern that Bitcoin experienced in the crypto winter of 2022. This view is supported by fractal theory, which suggests that: Price structures tend to repeat across different timescales and assets When investors have similar psychological states.
Battaglia identifies three key stages in this process of technological degradation. It begins with “a retail-driven parabolic rally in exchange-traded funds (ETFs) and China, followed by the formation of a double peak similar to the digital currency peak that marks the exhaustion of buyers.”
Under this interpretation, markets move by “pure imitation,” following technical patterns, regardless of fundamentals. It will lead to the final stage of liquidation This is due to “bankruptcies of investors and central banks who sell gold to protect fiat currencies.”
“The market repeats itself, which is why technical analysis allows you to predict the market and manage your portfolio,” Battaglia said. At the end of his analysis, he warned that we could expect a 50% correction and a bear market with a minimum duration of 10 to 30 years, following past gold cycles that, due to the laws of technical analysis, must repeat as fractals.
