Analysis: The "Wash Shock" will continue next week, and traders heavily invested in precious metals may find themselves in trouble.

Seth R. Freeman, Senior Managing Director at GlassRatner Consulting & Capital Group, points out that one of Warsh's primary tasks as the newly nominated Federal Reserve Chair will be rebuilding credibility in global markets. This is particularly important given the tense relationship between Trump and Powell in recent months. Freeman also states that Warsh is the best candidate, given his long experience in government. The best news is that we no longer have to deal with the uncertainty and market turmoil caused by Trump's constant pressure on the Fed Chair, which is good for everyone. Furthermore, he notes that the sharp drop in gold and the even more dramatic decline in silver indicate a stronger dollar and a different environment, especially for silver. Given this nomination, it wouldn't be surprising if metal prices don't rebound significantly. And given Warsh's hawkish leanings, traders heavily invested in precious metals may face losses, especially those with unhedged or short positions. Some traders may find themselves in serious trouble next Monday, at least those who haven't taken a neutral stance or shorted precious metals. (Jinshi)