Gold tumbles from record highs as markets cool on debasement trade

Gold has slid as much as 12% after racing above US$5,500 an ounce, marking one of its sharpest pullbacks in decades.

The sell-off followed Donald Trump’s nomination of Kevin Warsh as Fed chair, jolting the dollar higher and forcing a rapid unwind of crowded “debasement trade” bets.

Despite sharp losses across silver and gold miners, professional investors now frame the move as a violent re-pricing of risk after an overheated rally.