Gold experienced its most significant plunge in over ten years following US President Donald Trump’s appointment of Kevin Warsh as chairman of the Federal Reserve. The price of bullion fell sharply, dropping by 2.2 per cent to $US4785.54 an ounce just after 11am AEDT, according to Bloomberg data. Silver also experienced a decline, sliding 2.3 per cent to $US83.30.
Robert Gottlieb, a former precious metals trader at JPMorgan Chase and Co and now an independent market commentator, noted the potential for further volatility. “This isn’t over,” Gottlieb stated, emphasising the need to observe if the metal would find support and pointing out that the trade had become excessively crowded.
The sell-off in gold significantly impacted ASX-listed gold miners. Emerald Resources experienced a substantial decrease of 10.2 per cent, while Catalyst Metals fell by 8.2 per cent. Vault Minerals was down 7.9 per cent, and Capricorn Metals saw a decrease of 7.7 per cent.
Larger mining companies also faced considerable losses as a result of the gold sell-off. Newmont’s shares decreased by 6.3 per cent, and Northern Star experienced a downturn of 5.7 per cent. This broad decline reflects the widespread impact of the rapid change in precious metal values.
