US EditionGold, Silver Extend Declines After Dramatic Reversal of Rally
Kevin Warsh's Fed chair nomination triggered a sell-off causing gold to drop over 10% and silver to plunge 27%, reversing months of gains amid tighter policy expectations.
- On Friday, gold plunged about 10.5% and spot gold was down 6.1% to $4,565.79 by 0726 GMT, with the selloff extending into the Sunday-to-Monday session and Monday's Asian hours.
- Amid a reset in U.S. policy expectations tied to President Donald Trump nominating Kevin Warsh, former Federal Reserve governor, CME Group and major exchanges raised margin requirements, forcing leveraged traders to post more or sell.
- Spot silver and gold data show that a sharp drop in precious metals triggered the liquidation and margin call of derivatives holding them, Lee said.
- On Monday, the Korea Exchange issued a sell-side circuit breaker after the KRX gold market hit its 10% floor for the first time since 2014, and the Korea Composite Stock Price Index tumbled 274.69 points to 4,949.67.
- Given metals' near 47% six-month gains, analysts at J.P. Morgan said they expect the rally to remain intact in the longer term, despite Monday's 3.9% drop in the S&P GSCI.
101 Articles
101 Articles
Commodities sell-off continues in markets following Warsh Fed pick
Big declines in gold and silver prices have pushed commodity prices lower since President Donald Trump announced his nomination of Kevin Warsh to lead the Federal Reserve. After months of enormous gains in gold and silver prices, which are considered risk assets, sellers began offloading in droves on Friday, a sell-off that has continued to some extent on Monday. The moves come as markets try to interpret what Warsh as Fed chairman might mean. D…
The prices of gold, silver, oil, natural gas and even cryptocurrencies continued their sharp declines that began late last week on Monday. The record rise in the precious metals market over the past year quickly turned into a wave of panic selling. The price of gold fell 10 percent and the price of silver 16 percent in a single day.
Precious metals plummet in their price for the expectations of a stronger dollar after the Trump candidate for the Federal Reserve became known Gold and silver sink after Trump's nomination of the next president of the Federal Reserve IBEX 35 has broken a new record this Monday and closed the session above 18,000 points, after investors have opted for the stock market to the detriment of precious metals, such as gold and silver, which have plumm…
Basically, the catalyst for this debacle would be the appointment of Kevin Warsh as head of the U.S. Federal Reserve, effective as early as May. Contrary to initial fears, this appointment reassured the markets. Warsh, former Fed governor and former White House councillor, is perceived as a man of the seral, respected by Wall Street.Married to an heiress of Estée Lauder, he represents a consensual and reassuring choice.For his new mandate, inves…
Gold, silver prices continue to slide after Trump picks new Fed chair
Wild swings that swept through financial markets overnight calmed as Wall Street opened for trading on Monday. U.S. stocks are holding relatively steady following gains in Europe and sharp drops in Asia, while gold and silver prices rallied back from severe earlier losses.
The Ibex 35, the main index of Spanish exchanges and markets, has exceeded 18,000 points by...
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