Editor’s Note
This article reports on a sharp decline in global precious metals prices, with specific figures for gold. Market data is sourced from Reuters and reflects trading conditions as of the stated time.
Global precious metal markets are experiencing extreme volatility as gold and silver prices have fallen sharply.
According to Reuters on the 5th (local time), the spot price of gold traded at $4,872.83 per ounce as of 1:31 PM Eastern Time, down 1.8% from the previous close.
The closing price for April delivery gold futures on the New York Mercantile Exchange also fell 1.2% to $4,889.50 per ounce.
The spot price of silver plunged 12.1% to $77.36 per ounce at the same time that day. During the session, it fell as low as $72.21, significantly dampening investor sentiment.
Experts analyze that technical factors have fueled the sell-off and price decline.
However, he added that there has been no significant change in the fundamentals of gold and silver.
The market volatility is intertwined with recent uncertainty over US monetary policy. Since Kevin Wash, a former Federal Reserve Board governor, was nominated as the next Fed chair candidate last week, concerns over a “Sell America” (selling of US assets) have eased, causing precious metal prices to repeatedly plummet and rebound.
Furthermore, the CME Group’s move to increase margin requirements for precious metal futures trading, leading to a rise in forced liquidations, is also cited as a factor exacerbating the price plunge.