Global markets experienced a rollercoaster ride on Monday as the price of gold and silver fluctuated wildly, with investors shifting their focus back to stocks after a tumultuous weekend. The FTSE 100 index broke through its own record high, closing at 10,341 points, thanks in part to a partial recovery in the metals market.
Gold prices plummeted by as much as 8% on Monday, reaching $4,465 an ounce before recovering some ground to end the day 3.5% lower at $4,700. The sharp sell-off was largely attributed to Donald Trump's decision to nominate Kevin Warsh, a former Fed governor, as his successor, sparking concerns that he would push for tighter monetary policies and reduce inflation.
Warsh is expected to succeed Jerome Powell in May, and investors are breathing a sigh of relief that the "Trump cheerleader" will not be installing another central banker who favors rate cuts. Analysts at Wealth Club described the metals sell-off as a "meltdown," while senior research strategist Michael Brown at Pepperstone noted it was a "big reversal of safe-haven positions."
The price of industrial metals also dropped on Monday, with platinum and copper falling. However, other assets like bitcoin saw some recovery, rising 1.8% against the US dollar despite still trading below its peak of $125,000 last year.
Oil prices fell by 4%, as signs of tensions easing between the US and Iran led to a decrease in investor anxiety. The S&P 500 share index opened higher on Monday, while the dollar rose by 0.43% against rival currencies.
Analysts at Deutsche Bank remain bullish on gold, predicting it will reach $6,000 this year. Meanwhile, Mohit Kumar at Jefferies noted that the recent sell-off in gold was largely an "unwind" of a crowded trade, with positioning now sitting above four out of ten, indicating that many weaker hands have been cleaned out.
Despite these predictions, gold and silver prices are still up by significant margins compared to this time last year. Gold is 65% higher than its price last year, while silver has increased by more than 120%.
Gold prices plummeted by as much as 8% on Monday, reaching $4,465 an ounce before recovering some ground to end the day 3.5% lower at $4,700. The sharp sell-off was largely attributed to Donald Trump's decision to nominate Kevin Warsh, a former Fed governor, as his successor, sparking concerns that he would push for tighter monetary policies and reduce inflation.
Warsh is expected to succeed Jerome Powell in May, and investors are breathing a sigh of relief that the "Trump cheerleader" will not be installing another central banker who favors rate cuts. Analysts at Wealth Club described the metals sell-off as a "meltdown," while senior research strategist Michael Brown at Pepperstone noted it was a "big reversal of safe-haven positions."
The price of industrial metals also dropped on Monday, with platinum and copper falling. However, other assets like bitcoin saw some recovery, rising 1.8% against the US dollar despite still trading below its peak of $125,000 last year.
Oil prices fell by 4%, as signs of tensions easing between the US and Iran led to a decrease in investor anxiety. The S&P 500 share index opened higher on Monday, while the dollar rose by 0.43% against rival currencies.
Analysts at Deutsche Bank remain bullish on gold, predicting it will reach $6,000 this year. Meanwhile, Mohit Kumar at Jefferies noted that the recent sell-off in gold was largely an "unwind" of a crowded trade, with positioning now sitting above four out of ten, indicating that many weaker hands have been cleaned out.
Despite these predictions, gold and silver prices are still up by significant margins compared to this time last year. Gold is 65% higher than its price last year, while silver has increased by more than 120%.
Like, one minute gold and silver are going through the roof and the next they're plummeting like crazy 
. I'm just glad that Kevin Warsh is being nominated as the new head of the Fed - I mean, let's be real, Jerome Powell was a bit too relaxed on interest rates for my liking 
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And it's awesome to see that the S&P 500 share index is doing well - that's some great news for investors out there 
. That Trump nomination drama was definitely making everyone nervous 
. But honestly, it's not like the Fed hasn't been raising rates lately anyway... 
Still, I do worry that gold prices are gonna keep going up and that might mean some people get hurt if they're holding onto their portfolios 
. On the other hand, it's awesome to see bitcoin bouncing back a bit 
...
. And what about silver? Is that just the wild card, the outlier in an otherwise uncertain world? I wonder if we're seeing a pattern here, one that says more about us than it does about economics or politics...
the metals market is so unpredictable right now! I was expecting a bigger sell-off after that crazy weekend, but it's actually kind of relieving to see gold and silver recover some ground. The whole thing just got crazy with Trump nominating Warsh – talk about a shock move! 
It's going to be interesting to see how the Fed reacts once he takes over in May... 
, but gold and silver prices are like, what's going on with that? 
it's crazy how quickly they can drop, especially after Trump's announcement about Warsh becoming the next Fed governor 
. I'm still holding onto my bitcoin though, hoping to see some recovery soon 
. And now analysts are saying it was just a correction? I'm not so sure... 
. But what if interest rates do go up? Do we really know what Warsh will do? 
. I don't have all the answers, but one thing's for sure: markets are always full of surprises 
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so the market's all over the place right now... i think people are just waiting for that Fed meeting in may and how it's gonna affect inflation and interest rates... kevin warsh's nomination might be a relief for investors who were worried about rate cuts, but analysts at Deutsche Bank still think gold's gonna hit $6k this year 
. The metals sell-off was insane, like a total meltdown 
. But overall, I think gold's gonna keep going up, $6,000 is looking pretty achievable for Deutsche Bank 
. But I gotta say, that sell-off in gold was wild 
I don't really understand how it works but my friend says it's like a big bet on the future of tech. Does that make sense? 
️! But let's not get too carried away here... we're still in a crazy market, folks. Analysts are saying gold will reach $6,000 this year, but I'm keeping it real, that's some wild speculation 
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what's going on with trump's team anyway? seems like everyone's getting cold feet about warsh being in charge 
hope he doesn't take the fed too far down a certain path 
. But at the same time, I'm a bit worried about this whole Warsh thing 
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. It'll be interesting to see if this trend holds up.
. gotta admit, not knowing who Warsh is was kinda worrying