Lates News

On Friday, gold experienced the biggest drop in forty years, while silver recorded a record intraday plunge, signaling a sharp reversal of the previous trend that pushed gold prices to new highs. In the past year, investors' enthusiasm for precious metals has continuously reached new highs, shocking even experienced traders and leading to abnormal price fluctuations. With Trump previously signaling tolerance for a weaker dollar, investors have been pouring into the metal market, but the dollar's rebound has dampened their sentiment. Traders see Powell as the most determined inflation fighter among the final candidates, which has boosted support for the dollar and weakened expectations of monetary policy in terms of dollar-denominated gold. "Trump's nomination of Powell as the next Fed chairman candidate is positive for the dollar and negative for precious metals," said Akash Doshi, global head of gold and metal strategy at Deaux Investment Management. "This may also be exacerbated by the end-of-month portfolio rebalancing as shorting the dollar and going long on precious metals has been the market consensus for macro trading in the past two to three weeks."