All articles tagged with #precious metals
Gold fell more than 1% in thin liquidity as a firmer dollar supported non-dollar priced bullion, with spot gold around $4,976/oz and US futures near $4,997/oz. Silver dropped about 2% and platinum/palladium also slid, as traders weighed mixed US data and expectations for Fed policy amid holiday closures in the US and Lunar New Year in Asia.
The newsletter describes the Fed’s shift from shrinking reserves to a gradual balance-sheet expansion (starting with about $40B/month and a baseline of $20–$25B/month) to maintain ample reserves and control rates, a milder form of stimulus that could mildly support asset prices. It explains the difference between QE and reserve-management purchases, outlines possible 2026 scenarios and shocks, analyzes Japan’s rising yields and potential yield-curve actions, and notes a volatile but enduring precious-metals trade alongside portfolio updates. Overall, policy is expected to be modestly supportive for assets while emphasizing valuations and diversification.
After a January spike—gold topping $5,300/oz and silver near $120—prices have stabilized in February, but local coin shops are feeling the squeeze as refinery backlogs slow processing and reduce cash flow; shops are limiting daily buys to manage risk while continuing to serve customers.
Gold remains firm after Friday’s historic metals sell-off, with many observers still expecting upside for gold; silver may experience more volatility. UBS cautions that the move reflects normal volatility within a continuing structural uptrend, not the end of the bull market.
Silver extended its volatility, sliding about 11% to around $78.3 per ounce as New York futures fell roughly 8% after a brief rebound; the move follows a near-30% drop last Friday and a record rally earlier in 2025. Analysts say speculative flows, leveraged positions and options-driven trading drove the swings rather than physical demand, with higher margin requirements amplifying the unwinds, while gold also declined about 2%.
On Friday’s 46-year gold plunge, options traders bet the metal could reach $20,000 per ounce by year-end, per SocGen, with open interest rising as investors positioned for extreme outcomes; analysts say the move reflects positioning and ETF flows rather than fundamentals, and SocGen remains bullish on gold, viewing the correction as healthy.
Gold and silver cooled after their meteoric rise, with gold dipping below $4,500 an ounce and silver falling more than 31% on Friday—the largest one-day drop since 2013—before rebounding to about $4,779 and $81 by late morning. The slide followed a stronger dollar and expectations that Fed policy could stay tight under nominee Kevin Warsh, along with margin calls that forced leveraged investors to sell. Analysts are divided on the near-term path, with some predicting a bounce and others warning the rally may have been inflated.
Gold, silver and other precious metals have swung from near-record highs to declines, underscoring volatility in the market. Experts warn sellers to do due diligence, obtain multiple valuations, and consider that value comes from metal as well as stones, design, and ownership terms. Selling to cover debt can help short-term needs but may remove a future asset, so explore different selling routes and remember trends in jewelry preferences (e.g., a shift toward brighter yellow gold).
JPMorgan says central-bank and investor demand could push gold to about $6,300 per ounce by year-end, with 800 tonnes of central-bank buying projected for 2026; gold has slipped to around $4,677/oz after a peak near $5,595, while silver remains near $80/oz and the bank flags a higher floor for silver relative to gold.
Spot gold fell about 6% to $4,565.79/oz and spot silver dropped roughly 12% to $74.48/oz as CME Group raised margin requirements on precious metals after last week’s slide triggered by Kevin Warsh’s nomination for Fed chair, fueling forced liquidations and selling amid higher capital costs; the move wiped out more than $1,000 from gold’s record peak, though some analysts like JPMorgan remain bullish on gold’s medium-term prospects.
Robin J. Brooks argues the debasement trade remains intact despite Friday’s sharp declines in silver and gold. He attributes this to high and rising public debt, political pressure on the Fed to cut rates, and market expectations that the Warsh nomination will be dovish, all of which keep demand for safe havens and potential debt monetization intact even after the metal correction.
Asia-Pacific stocks fell Monday, led by Korea’s Kospi with futures plunging up to 5%, while Hang Seng and CSI 300 also declined. Gold and silver extended Friday’s declines as investors eyed China’s January PMI, which showed manufacturing expanding at 50.3—the strongest reading in months. Bitcoin slipped back under $80,000 and U.S. stock futures edged lower, signaling a cautious session ahead.
Silver’s surge to roughly $120/oz followed by a historic Friday drop to $85 highlighted extreme volatility, but Barron’s argues that silver-miner stocks could offer attractive upside as supply tightens, demand remains robust, and margins expand; key producers like Fresnillo, Hecla, Coeur, Pan American Silver and First Majestic, along with streaming firm Wheaton Precious Metals, provide varied risk/return profiles, while ETFs such as Global X Silver Miners and Sprott Silver Miners & Physical Silver offer diversification—yet investors should brace for continued volatility and potential supply responses.
Rising prices push gold above $5,000 per ounce and silver above $100 as everyday Americans rush to sell gold bars, coins, and even heirloom pieces. Pawn shops report lines out the door and staff doubled to handle demand, driven by gold and silver’s safe-haven status amid economic and geopolitical jitters. Analysts project further gains—Goldman Sachs and Bank of America foresee ~$5,400–$6,000 an ounce by year’s end—while refiners benefit from sending raw metal to processing rather than reselling, and some sellers experience windfalls from scrap or broken jewelry.
Global gold demand reached a record in 2025 driven by geopolitical uncertainty and a surge in investment demand, sending gold futures above $5,500 an ounce and outpacing the S&P 500 as ETFs, bars, and coins collectively rose about 84% to 2,175 tons; analysts say the momentum from the “debasement” trade and ongoing risk environment could keep the rally alive into 2026.