Gold Below 5,000 Dollars, Silver Saw 100 Dollars!

Sharp Drop in Gold Prices

The price of gold per ounce has dropped by more than 7 percent to below 5,000 dollars due to increasing tensions between the US and Iran, along with investors preferring to take profits.

Beginning of the Year in 2022

Gold started the year at a level of 4,321 dollars and had reached over 5,600 dollars yesterday, setting a record. However, the current gold prices have shown an increase of approximately 600 dollars since the beginning of the year.

Silver Prices Also Declining

In this period where gold has hit a low, it is noteworthy that silver prices have also decreased by more than 17 percent, falling below 100 dollars. Since the beginning of the year, the value of silver has increased by over 40 percent, surpassing gold which has shown an increase of 20 percent.

Reasons for the Increase in Precious Metals

Factors contributing to the annual increase in the price of precious metals include economic uncertainties, geopolitical tensions, and a weakening US dollar. Additionally, increased ETF inflows and expectations of interest rate cuts had created significant demand for gold.

Analysts' Predictions

Analysts express that the primary reason for today’s decline is investors taking profits from record levels and speculation that President Donald Trump may appoint Kevin Warsh as Fed Chairman. Concerns over a more hawkish Fed management maintaining high interest rates are strengthening the dollar, reducing the appeal of non-yielding assets such as gold and silver.

In this environment, gold is now considered to be used not only as a traditional safe-haven asset but also as a source of liquidity for investors.