Gold Collapses $100 in ‘Risk-On’ Rout as Wall Street Bets Big on 2026

XAU/USD (Spot Gold) suffered a catastrophic session, plummeting over $100, while Silver crashed 7.00%. The violent sell-off in precious metals marks a sharp decoupling from geopolitical risks, driven by a wave of profit-taking and an aggressive surge in “Risk-On” sentiment across equity markets.

The ‘Euphoria’ Divergence

The collapse in safe-haven assets coincides with a rare consensus among Wall Street strategists. According to Bloomberg, sell-side analysts have almost unanimously abandoned bearish calls, predicting the S&P 500 will rise another 9% in 2026. This would mark the longest winning streak for US equities since the pre-2008 era.

Key drivers for this optimism include:

• Resilient Growth: The US economy expanded at its fastest pace in two years during Q3 2025.
• Corporate Earnings: Profit growth is broadening beyond tech giants.
• Fed Support: Markets remain convinced that the Federal Reserve will backstop any economic weakness.

Analyst Concerns

Despite the optimism, the sheer speed of the move has triggered caution. With Gold liquidation accelerating, traders are questioning if the market is mispricing the “higher for longer” rate risks or the potential for renewed inflation. The sudden drop in metals may also signal liquidity needs elsewhere, often a precursor to broader volatility. For Forex traders, the correlation between AUD/USD and metal prices suggests immediate downside pressure on the Aussie and other commodity-linked currencies.