Hawkish Powell Expectations Trigger Full-Blown Commodity Market Crash, Gold and Silver Experience Epic Shakeout Again

Odaily News On Monday, commodity markets experienced a broad decline, led by gold, silver, crude oil, and industrial metals. CBA commodity strategist Vivek Dhar stated, "The market decided to sell off precious metals alongside US stocks, indicating investors perceive Powell as more hawkish. Furthermore, a strengthening US dollar has also exerted pressure on precious metals and other commodities including crude oil and base metals." However, he maintains his forecast for gold to reach $6000 in the fourth quarter. Asian stock markets followed US stock futures sharply lower, with the chaotic sell-off in precious metals adding a tense atmosphere to the start of a week packed with corporate earnings, central bank meetings, and economic data. Dhar commented, "The key question is whether this marks the beginning of a structural decline in commodity prices or is merely a correction. We view this as an adjustment and a buying opportunity, not a shift in fundamentals." (Jin10)