Decline continues in gold and silver
Sudden drops in gold and silver prices have unsettled investors. On the first trading day of the week, gold experienced record losses for the decade, while sharp fluctuations were observed in the silver market.
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The gold market is experiencing its heaviest loss in value in recent years, while silver has also exhibited volatile movements. On Monday, the ounce price of gold lost 4.4 percent of its value, falling to 4,680.76 dollars. During the same period, silver, despite rising initially during the session, fell to around 75 dollars due to heavy selling. In the previous session, silver had recorded an unprecedented single-day loss in history.
"This is not over yet," said Robert Gottlieb, a former JPMorgan Chase & Co. precious metals trader and independent market commentator, emphasizing that investors' avoidance of risk has reduced liquidity in the markets.
Over the past year, which has been dominated by economic and geopolitical uncertainties, significant gains had been observed in precious metals. In January, new records were broken in gold and silver, particularly due to purchases by Chinese speculators, amid geopolitical crises, currency devaluations, and concerns regarding the independence of the US Federal Reserve.
WHAT WAS THE REASON FOR THE SUDDEN SELLING WAVE?
Behind the rapid sell-off that began last Friday, news emerged that US President Donald Trump would nominate Kevin Warsh for the Fed chairmanship. It was noted that this development strengthened the dollar, while Trump's potential policies reduced upward expectations for precious metals. Investors are said to view Warsh as the candidate among those currently considered who advocates for the strictest fight against inflation. This supported the dollar index and created selling pressure on gold and silver, which are priced in dollars.
Silver exhibited one of its most turbulent movements in recent years on the first day of the week. Rising 3.2 percent in a short time, silver subsequently fell back to the 75 dollar level. In the previous session, it had recorded the largest intraday loss in its history.
CURRENT STATUS IN THE MARKETS
According to the latest measurements, as of 09:21 Singapore time, gold continued to trade at 4,680.76 dollars, having lost 4.4 percent of its value. While the daily loss in silver was 2.2 percent, its ounce price fell to 83.2965 dollars. Similar declines were experienced in other precious metals such as platinum and palladium. On the other hand, the Bloomberg Dollar Spot Index rose by another 0.1 percent following its 0.9 percent gain in the previous session, signaling that the dollar is strengthening globally.
Market experts state that high volatility in precious metals may continue in the short term. New financial and political developments are expected to be decisive in determining the direction of investors.