[Golden Group] Sudden market! Gold prices plunged more than $10 short - term, lost 1825 silver prices fell 1%
2021-02-04


FX168 Financial News (Hong Kong) - Thursday (February 4) sub-market intraday, precious metals market suddenly fluctuated. Spot gold and silver have a short - term rapid decline, gold prices fell sharply more than 10 dollars, lost $1825 / ounce; Silver fell 1% on the day.
 
Spot gold closed Wednesday at $1833.89 an ounce, down $3.99, or 0.22 percent. Thursday Asian market intraday, gold prices fell sharply short - term, as low as $1823.78 / ounce.
 
 
 
(Spot gold 15-minute chart source: FX168)
 
FXStreet writes that a bearish cross is forming on the gold daily chart, suggesting that the bears may still be holding out hope despite the recent rally.
 
According to Economies.com, gold took a new dip on Wednesday and tried to continue the expected bearish trend. The first major target for gold was $1820.00 / oz. A break below $1820.00 could extend gold's decline to its next major target of $1800.00.
 
As long as gold remains below $1,850.80 an ounce, the bearish outlook will remain in force, according to Economies.com. Short term support and resistance are expected at $1,820.00 and $1,855.00, respectively.
 
Daniel Ghali, commodity strategist at TD Securities in New York, said a steepening U.S. Treasury yield curve and a jump in stocks weighed on gold.
 
Some analysts pointed to an "ominous sign" for gold, which has been led by silver to fall faster than it has rebounded, suggesting the downside remains dominant, especially with Treasury yields edging higher and the dollar holding firm.
 
Spot silver fell 1 percent on the day, touching as low as $26.58 an ounce.
 
 
 
(Spot silver 15 minutes chart source: FX168)
 
Spot silver, which hit $30.03 an ounce on Monday, its highest level since February 2013, fell more than 8% on Tuesday.
 
Silver prices have been hit recently after the Chicago Mercantile Exchange raised the margin requirement for holding silver futures to control market volatility.
 
U.S. Treasury Secretary Janet Yellen has summoned U.S. financial regulators to discuss the recent volatility in financial markets, her first public effort to address the market turmoil involving GameStop stock and brokerage Robinhood.
 
Yellen convened meetings of the Securities and Exchange Commission, Federal Reserve Board, New York Federal Reserve Bank and Commodity Futures Trading Commission, the Treasury said in a statement late Tuesday local time. The Biden administration and regulators have been under pressure in recent days to respond to the market frenzy.
 
David Madden, market analyst at CMC Markets UK, said the move was not unusual at a time of extreme price volatility, with both silver and gold falling as a result and gold under pressure from the wider rise in risk appetite.