Commodity Markets See Steep Decline in Gold, Silver, Oil, and Industrial Metals
Summary
Commodity markets experienced a steep decline with gold, silver, oil, and industrial metals prices falling sharply due to the US Federal Reserve Chair appointment, expectations of sluggish demand ahead of the Chinese New Year, and a strengthening US dollar.
Key Points
- Gold prices dropped about 9 percent, hitting a two-week low.
- Silver prices fell over 13 percent, with a record single-day drop recently.
- Oil prices decreased nearly 5.5 percent amid easing US-Iran tensions.
- The appointment of Kevin Warsh as US Fed Chairman and a stronger dollar pressured commodities.
- Chinese New Year is expected to slow demand for metals like copper and iron.
- Margin increase in futures trading led to withdrawal of investments in metals.
- The market decline is considered a temporary correction and buying opportunity.
- Asian stock markets were also impacted by these global financial movements.
