Editor’s Note
This article reports on a significant downturn in precious metals prices, with silver experiencing a particularly sharp decline. Market fluctuations can be rapid; readers should consult current data and financial advisors for the latest information.
The global precious metals market is witnessing a continued sharp decline in gold and silver prices. On the 5th (local time) in New York, the spot price of gold traded at $4,872.83 per ounce, down 1.8% from the previous session. The closing price for April delivery gold futures on the New York Mercantile Exchange (COMEX) was $4,889.50 per ounce, a 1.2% decrease from the previous session. The spot price of silver plunged 12.1% to $77.36 per ounce during the same period, even falling to an intraday low of $72.21.
Bob Haberkorn, Senior Market Strategist at RJO Futures, analyzed that some investors are liquidating their precious metals positions due to margin call issues.
The price fluctuations in gold and silver have been volatile following the nomination of former Federal Reserve Governor Kevin Warsh as the next Fed chair candidate, which eased ‘Sell America’ concerns. In particular, the CME Group, which operates the New York Mercantile Exchange, has increased margin requirements for precious metals futures trading. This situation is exacerbating the sell-off as investors facing margin calls rush to liquidate their contracts.
This market volatility presents a new challenge for investors, and future movements in the precious metals market are being closely watched.