"The centre of the action in financial markets was again precious metals, where momentum has suddenly halted after gold's price roughly doubled in 12 months. Gold briefly dropped below $4,500 US per ounce in the overnight hours, down more than $1,000 from its high point reached just last week. It later erased much of that loss and pulled back to $4,725.00, down 0.5 per cent from Friday."
"Silver's price has been on an even wilder ride recently, and it pinballed from a nine per cent loss overnight to a three per cent gain. Gold and silver prices had earlier been surging as investors looked for safer assets to own amid a wide range of worries, including a Federal Reserve that may become less independent, a U.S. stock market that critics say is expensive, threats of tariffs and heavy debt loads for governments worldwide."
"Some on Wall Street saw it as a result of President Donald Trump's nomination of Kevin Warsh as the next chair of the Fed, the U.S. central bank. Warsh's reputation as a former Fed governor may have raised expectations among some investors that he may keep interest rates high to fight against inflation, which would reduce the need to hide out in gold and silver for protection."
Wild overnight swings in global financial markets calmed as U.S. stocks opened, following gains in Europe and sharp drops in Asia. Gold, which roughly doubled over the past year, briefly fell below $4,500 per ounce—more than $1,000 off a recent high—then recovered to $4,725, down 0.5% from Friday. Silver swung from a nine percent overnight loss to a three percent gain after a dramatic 31.4% plunge on Friday. Investors bought safe assets amid concerns about a potentially less independent Federal Reserve, high U.S. stock valuations, tariff threats, and heavy government debt. Markets reacted to President Trump's nomination of Kevin Warsh to lead the Fed, raising debate about future interest-rate policy.
Read at www.cbc.ca
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