Market Views: Is the party over for gold and silver's rally?
Precious metals’ sharp price correction may reflect a classic “buy the rumour, sell the fact” response to the new Fed chair's nomination, as investors reassess expectations of a dovish central bank and renewed dollar weakness.
Gold and silver suffered their sharpest one-day selloff in decades after markets reacted to Kevin Warsh’s nomination as the next Fed Chair, and extended their losses as CME Group hiked margin requirements. Gold tumbled 9% to $4,895 per ounce, its steepest daily drop since the early 1980s, while silver plunged as much as 35% intraday before settling 26% lower at $85 per ounce.
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