Gold’s retaliatory rebound! Since the United States released the nonfarm payrolls and Fed Chairman Warsh’s remarks, gold and silver have both seen a retaliatory rebound.

The nonfarm payrolls came in below expectations, and Warsh’s remarks were also seen as dovish. However, I believe the market has completely underestimated the power of Warsh’s comments. He stated clearly that he intends to shrink the balance sheet, while many analysts think this is just talk and won’t be carried out.
Although Warsh acknowledged that it will take a long time—mainly to avoid having a clear impact on the market—his determination to tighten policy is extremely strong, and he certainly won’t give up.
The most direct negative factor of balance sheet reduction is gold!