Monday’s trading session witnessed precious metals markets recovering from dramatic price swings that had rattled investors worldwide. Gold prices advanced from an 8% plunge to $4,465 per ounce, climbing to $4,700 though still down 3.5%. Last week’s trading had seen the yellow metal close to $5,600.
Silver markets followed comparable patterns, rebounding from a 7% fall after Friday’s shocking 30% drop to reach $79.60 per ounce. The partial recovery in metals prices supported Britain’s leading equity index in achieving a historic milestone, surpassing the 10,300 mark for the first time and settling at 10,341 with an intraday peak of 10,345.
Recent weeks had witnessed both metals reaching successive peaks as investors flocked to safe investments amid mounting global tensions and concerns about Federal Reserve autonomy. The reversal began Friday when authorities announced Kevin Warsh, a former Fed governor with strong credentials, as the candidate for chairman. Subject to Senate confirmation, Warsh will assume the role when the current term concludes in May.
Market experts view the selloff as positive confirmation that partisan influence won’t dominate economic policy at the central bank. According to Susannah Streeter at Wealth Club, Warsh’s extensive Federal Reserve experience suggests resistance to external pressure, triggering the major unwinding of defensive investments. Pepperstone’s Michael Brown characterized the Friday movement as a comprehensive “meltdown in the metals space.”
Energy markets and cryptocurrencies reflected changing sentiment, with bitcoin recovering 1.8% while remaining below $80,000, and oil prices falling 4% to approximately $65.24 per barrel on reduced geopolitical concerns. Despite recent volatility clearing positions, precious metals maintain extraordinary gains, with gold up 65% and silver climbing more than 120% year-over-year, while Deutsche Bank maintains its $6,000 gold forecast.
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