Gold prices experienced a significant plunge, dropping to a low of $US4584 in afternoon trading. This represents a sharp $US311, or 6.3 per cent, decrease from Saturday morning levels as markets actively reposition following US President Donald Trump’s selection of Kevin Warsh as a potential Federal Reserve leader.
IG market analyst Tony Sycamore noted that the price drop on Monday was triggered after breaching Friday’s low of $US4679, which subsequently unleashed a fresh wave of leveraged stop losses. Sycamore added that “The latest leg of the sell-off came precisely on the reopening of markets in China.”
Despite the volatility, silver demonstrated resilience, holding steady near $US81.00. This level is significantly above Friday’s low of $US73.30 and Monday morning’s low point of $US76.73.
Sycamore suggests that “With gold positioning now significantly cleaner and silver refusing to crack, a short-term capitulation low appears to be in place at $US4584.” In recent trading, gold was down 2.8 per cent at $US4747, while silver decreased by 2.3 per cent to $US83.27.
