Analyst: Gold Sell-off Could Trigger Chain Reaction, With Some Investors Even Selling Off Other Assets to Cover Losses

**Gold Drop Ripples Through Metals, Sparks Profit-Taking in Euro/Dollar** Feb. 6 — Analyst Jeremy Boulton noted that gold’s sharp drop rippled through other metals, potentially sparking a chain reaction where investors may lock in profits or sell off other fundamentally sound assets to cover losses. A wave of unrealized gains is currently waiting to be realized across markets. While AI-linked stocks have been in focus, the broader stock market remains resilient. In forex, traders who piled into high-risk, high-reward currency trades tied to last year’s interest rate arbitrage frenzy have also reaped big gains. Though such bets carry elevated risk, returns have been extremely lucrative—mirroring gains in stocks and the euro. Gold’s decline dragged the euro/dollar exchange rate lower, prompting traders to lock in profits. While euro/dollar long positions aren’t as crowded as gold’s, overbought signals emerged after the pair broke above 1.20. Rising risk aversion is fueling dollar buying (following its prior sell-off), giving traders another reason to take profits. (Markets Insider)