Today, the precious metals market is experiencing a sharp decline in prices. During trading, gold has decreased in price by 6.3%, while silver has dropped by 11.9%. Just recently, these metals were a reliable refuge for investors, but the subsequent decline has come as a real shock to all market participants.
The main catalyst for the sell-off was statements made in Washington. U.S. President Donald Trump announced his intention to appoint Kevin Warsh as head of the Federal Reserve. Warsh, known for his strict stance on fighting inflation, was perceived by the markets as a signal that the period of expecting a weak dollar was over. This strengthening of the U.S. currency had a negative impact on the prices of gold and silver, which are traded in dollars.
In addition to this political factor, there was also an overheated market. Over the past year, gold has significantly increased in price, while silver has shown particularly rapid growth, attracting speculative investors, including from China. Precious metals began to be viewed not only as a means of protection but also as a way to make quick profits. When prices started to fall, market sentiment changed sharply: a mass sell-off occurred against the backdrop of a lack of buyers, leading to a collapse in prices.
