Editor’s Note
This article discusses a sharp decline in precious metals prices driven by tightened margin requirements. Market volatility remains high, and investors should exercise caution.

[Economist Reporter Woo Seung-min] In the global precious metals market, gold and silver prices have plunged and volatility has increased due to the impact of tightened margin calls and margin requirements. Notably, silver prices recorded a double-digit decline in a single day, while gold prices also fell by over 1%.
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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 was $4,889.50 per ounce, down 1.2% from the previous close.
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The decline in silver prices was more severe. The spot price of silver traded at $77.36 per ounce at the same time, plummeting 12.1% from the previous close. During the day, silver prices even hit an intraday low of $72.21 per ounce.
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International gold and silver prices plummeted on the 30th of last month as concerns over ‘Sell America’ eased following the nomination of former Federal Reserve Governor Kevin Warsh, well-known on Wall Street, as the next Fed chair candidate last week, and have since continued to experience sharp fluctuations.
The CME Group, which operates the New York Mercantile Exchange, tightened margin requirements for precious metals futures trading, and investors facing margin calls rushing to liquidate their contracts contributed to intensifying the sell-off.