Editor’s Note
This article reports on a sharp decline in precious metals markets, with silver futures dropping over 10% and spot gold falling nearly 4%. The figures cited, particularly the $4,900 per ounce price for gold, appear to be a significant deviation from widely reported market data and should be verified against current, reliable financial sources.
International precious metals prices have seen a significant decline. Futures silver plummeted by over 10%, currently trading at $75.39 per ounce. Spot gold fell nearly 4%, trading at $4,900 per ounce.
On Friday, January 30, during the New York trading session, international precious metals prices experienced a sharp decline. Spot silver fell by over 36% at one point, while gold dropped by more than 12%. The sell-off was triggered by a combination of factors including a sudden shift in Federal Reserve policy expectations, excessive prior buying, leveraged position unwinding, and a cooling of geopolitical risk aversion sentiment.
Domestic gold jewelry prices fell by over 100 yuan in a single day, leading some gold shops to suspend purchases. In the A-share market, nearly 20 stocks in the precious metals sector hit the daily limit down. Leveraged investors reportedly suffered single-day losses exceeding 30%.
In response to the historic extreme volatility in the silver market, Guotou Ruiyin Fund announced adjustments to the valuation method for its Silver Futures Securities Investment Fund (LOF). The move, aimed at treating all investors fairly and avoiding a “first-to-redeem advantage,” resulted in a significant drop in the fund’s net asset value.
An exclusive report from Yicai Daily quoted the company’s response regarding the valuation adjustment.
Analysts believe the recent trend in international precious metals prices attracted a large number of speculators into the market, exacerbating volatility. The Shanghai Gold Exchange issued a notice urging members to enhance risk awareness and prepare contingency plans, while also reminding investors to manage risks and control positions appropriately.
