Analysis: Multiple Factors Trigger Record Plunge in International Precious Metal Prices

Odaily News According to Odaily, influenced by factors such as profit-taking and long position liquidations by short-term futures traders, international gold and silver prices continued their sharp decline on January 30th, both recording their largest single-day drops in decades. Market analysis suggests that U.S. President Trump's nomination of former Federal Reserve Governor Kevin Warsh as the next Fed Chair on the 30th exacerbated this sharp decline in precious metal prices. Warsh has publicly criticized the side effects of quantitative easing policies and believes the Federal Reserve needs to collaborate more closely with the U.S. Treasury Department on policy. Analysts from Britannia Global Markets, a London-based asset brokerage firm, stated that considering the speed and magnitude of the precious metals rally in January, this correction was not unexpected. Analysts from the UK research firm Metals Focus believe that the recent precious metals rally has shown signs of irrationality, but given the persistent geopolitical risks and economic uncertainties investors face, the market sell-off may be difficult to sustain. (CCTV News)