Editor’s Note
This analysis examines the recent sharp decline in gold and silver prices, attributing the move to a confluence of technical factors, a stronger US dollar following Kevin Warsh’s Fed Chair nomination, and reduced geopolitical risk premiums as tensions between the US and Iran de-escalated.
After a period of speculation, the prices of gold and silver have experienced a sharp decline, partly due to technical factors.
Kevin Warsh’s nomination as Fed Chair strengthened the US dollar and weighed on precious metal prices.
Geopolitical de-escalation between the US and Iran caused risk premiums for safe-haven assets to melt away.
The prices of gold and silver have plunged from their recent record highs.
While structural factors continue to support precious metals, high volatility and investor herd behavior continue to warrant caution.
