"At the time of writing, gold is down to $4,700 per Troy Ounce, having sat comfortably above $5,000 for the latter part of January. Silver is also down to $80 per Troy Ounce, similarly dropping on Thursday when news that Kevin Warsh would receive the nomination for Fed chairman firmed up. The price of precious metals, seen as an asset of safe haven, had pushed steadily higher over the past year in response to economic volatility."
"As Jim Reid at Deutsche Bank noted this morning, gold recorded its biggest single-day decline since 2013. He wrote to clients: "Warsh is known to be more hawkish on the balance sheet than other candidates, pushing back against the prevailing debasement narrative that has supported precious metals. That said, price action had long since detached from any sane discussion on debasement, but it often takes only a small ripple to trigger a broader correction, especially when there is leverage around.""
Gold and silver prices fell over the weekend, with gold sliding to $4,700 and silver to $80 after earlier gains. Precious metals rose over the past year as investors sought safe-haven diversification amid concerns about the U.S. dollar, central bank independence, and national debt. Kevin Warsh's expected nomination for Fed chairman changed market sentiment because he is viewed as less tied to the Trump administration and more hawkish on the Fed's balance sheet. That hawkish balance-sheet stance undercut the debasement narrative supporting metals and helped trigger a leveraged-driven correction. Some analysts called the drop notable but not necessarily structural.
Read at Fortune
Unable to calculate read time
Collection
[
|
...
]