Discover the Reasons Behind the Drop in Gold and Silver Prices

Sharp Decline in Gold and Silver: What Are the Reasons?

Recently, gold and silver prices have experienced a sharp decline after completing a record-level rise. Spot gold prices fell over 5%, dropping to $5,029.78 per ounce, while silver prices decreased by 14%, reaching $98.78.

Investors' Safe Haven: Gold and Silver

Over the past year, gold prices had shown strong increases due to geopolitical, economic, and trade uncertainties, along with a weakening dollar. With these factors in play, many investors turned to precious metals like gold and silver. Silver, in particular, had attracted investors' interest with the support of increased industrial demand.

Market Experts' Assessments

Ed Yardeni, president of Yardeni Research, notes that the recent decline in gold and silver prices may have been triggered by reduced financial uncertainties following the U.S. government's temporary agreement. Yardeni commented, "Returning to $5,000 and consolidating around this price is a normal situation in a bull market. However, what we have seen so far seems to exhibit characteristics of melting rather than a traditional bull market."

Other experts point out the nature of the price decline. Gregor Gregersen, founder of the precious metal dealer Silver Bullion, emphasizes the need for gradual selling for large profit realizations. According to Gregersen, the sudden sales occurred without a clear public factor in the background, creating a noteworthy situation. This suggests that it could be a "deliberate" move that may lead to further declines.

This information does not constitute investment advice.