Bob Savage, Head of Markets Macro Strategy at BNY, notes a significant correction in Gold prices, driven by the nomination of Kevin Warsh as the next Fed chair, which has strengthened the U.S. Dollar. Gold fell sharply, with a 5.9% drop, while Silver and Platinum saw declines of over 10%. Despite this sell-off, Gold has gained approximately 17% in January, indicating stretched positioning prior to the correction.
Market correction in precious metals
« Gold and silver prices plunged on Friday as word of Kevin Warsh’s nomination as the next Federal Reserve chair boosted the U.S. dollar and triggered a sharp correction in precious metals. Gold fell as much as 5.9%, while silver and platinum dropped more than 10%, unwinding part of a powerful rally that had pushed technical indicators to extreme levels. »
« Despite the sell-off, gold has still put on about 17% in January and silver 43%, underscoring how stretched positioning had become. Analysts said the news on Warsh provided a catalyst for a long-anticipated pullback after historically overbought conditions. »
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)