Gold, Silver Tumble: Is This Green Light For Tech Stocks? Tom Lee Says Metals Drop Is 'Pause That Refreshes' Bull Market

Kevin Warsh‘s nomination as the Fed Chair pick by President Donald Trump has sent precious metals into a tailspin, potentially unlocking a massive wave of liquidity for the equity markets.

End Of ‘Vortex’ Trade

The vertical ascent of gold and silver came to a screeching halt on Feb. 2, as the nomination of Warsh as Fed Chair triggered a violent reversal in commodity markets.

Tom Lee, Head of Research at Fundstrat, told CNBC that the previous rally was a “juggernaut trade” that had become a “vortex sucking risk appetite” away from the broader stock market.

As silver and gold plunged, Lee argued that this “bloodbath” is actually a “pause that might refresh” the broader bull market, releasing trapped capital back into risk assets.

A ‘Responsible’ Fed And The Tech Rotation

The market's rethink centers on the stability of the U.S. Dollar. Professor Jeremy Siegel hailed the Warsh nomination as an “excellent choice,” noting that Warsh is a “responsible, qualified man” who will not be a “lackey” or “toad” to political pressure.

This perceived end to currency debasement fears has effectively turned off the red light for tech investors.

With the dollar jumping, the fundamental “reason to hide” in metals has evaporated, providing what many see as a green light for the Mag 7 and the burgeoning AI sector to lead the next leg of the rally.

Focus On Earnings Over Sideshows

While commodity traders fret over the “parabolic” moves down, Jim Cramer urged investors to ignore the volatility. “Maybe we should just worry about earnings,” Cramer noted, dismissing the metals movement as a secondary event.

He emphasized that while sudden price movements are startling, they are often “sideshows” compared to the “meat and potatoes” of corporate profitability.

With the S&P 500 eyeing the 8,000 mark, the consensus among the experts is clear: the metals crash is not a sign of economic doom, but a necessary reset that clears the path for a historic run in tech and cyclical stocks through the remainder of 2026.

Gold, Silver Tumble

During the publication of this article, Gold Spot U.S. Dollar was trading 6.80% lower at $4,534.72 per ounce, falling from its last week’s record of $5,595.46. The ETF tracking gold prices, SPDR Gold Trust (NYSE:GLD), was up 11.72% year-to-date and 43.11% over the last six months as of the end of last week.

Similarly, Silver Spot U.S. Dollar was down 12.27% at $74.3075, down from its record high of $121.6700, scaled last week. Silver price tracker, iShares Silver Trust (NYSE:SLV), returned 14.74% YTD and 122.01% in the last six months.

Also, the SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, closed lower on Friday. The SPY was down 0.30% at $691.97, while the QQQ declined 1.20% to $621.87.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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