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Gold and Silver Prices Are Slumping After Their Meteoric Rise. Here's Why.
Gold dropped 11% and silver plunged over 31% in the largest single-day declines since 1983 due to inflation concerns and a stronger dollar after Warsh's Fed nomination.
- Following the White House announcement, metals markets moved sharply after Kevin Warsh's nomination, with bullion tumbling 9.8% on Friday and shedding about $900 from its January 29 high.
- Warsh is generally seen as more hawkish on inflation, which shifted rate-cut expectations amid consumer prices above the Fed's 2% target, while J.P. Morgan said his nomination triggered a U.S. dollar rebound that accelerated de-risking into Friday.
- Spot market data showed steep intraday losses, with spot gold down 4.8% at $4,630.59 and spot silver falling 9.2% to $76.81, while U.S. gold futures for April delivery settled 1.9% lower at $4,652.60.
- CME Group raised margins and analysts say forced liquidations likely prompted a short-term rout as leveraged investors who borrowed to buy metals faced rising margin calls; Nigel Green said, `Many chose, or were forced, to sell`.
- Warsh must be confirmed by the Senate and would assume the chair in May if approved, but Senator Thom Tillis of North Carolina may block nominees until the DOJ investigation opened earlier this month resolves.
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43 Articles
43 Articles
Gold, silver extend fall as CME margin hikes compound sharp selloff | Honolulu Star-Advertiser
Gold and silver prices continued to fall today as higher margin requirements at CME Group compounded last week’s sharp selloff following the nomination of Kevin Warsh as the next Federal Reserve chair.
·Honolulu, United States
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The steep price increase in gold, silver and platinum is followed by the abrupt crash. Investors have to make massive bets on pump – possibly with consequences for the stock market.
·Düsseldorf, Germany
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After new records last week, prices for gold and silver made an abrupt turnaround, but why did euphoria panic so quickly?
·Bonn, Germany
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Total News Sources43
Leaning Left0Leaning Right2Center26Last UpdatedBias Distribution93% Center
Bias Distribution
- 93% of the sources are Center
93% Center
C 93%
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