Gold and silver prices rose more than 5% today after a sharp selloff following the nomination of Kevin Warsh as the next chairman of the Federal Reserve (the US central bank).
Gold continued to rise in spot trading, rising 6% to $4,944.58 per ounce.
Earlier, spot gold prices rose 5.01% to $4,893.35 an ounce after hitting a one-month low in the previous session. The precious metal hit a record level of $5,594.82 last Thursday.
highest level
As for other precious metals, the price of silver in spot trading rose 11.7% to $85.93 per ounce. It hit an all-time high of $121.64 last Thursday.
In spot trading, platinum rose 0.6% to $2,134.10 an ounce after hitting a record high of $2,918.80 on January 26, while palladium fell 0.5% to $1,711.
fair value
“Given the irrational market behavior we’ve seen over the last few weeks, it makes sense that this price is close to fair value,” said Kyle Rodda, chief market analyst at one of the expert groups.
He added: “Prices are now back to where gold and silver were at the beginning of late January last year.”
“The market supported President Donald Trump’s nomination of Warsh as a relatively reliable figure, and we saw the dollar move accordingly, which lit the fuse for the precious metals price collapse,” Rhoda added.
Gold and silver prices rose more than 5% today after plunging after Kevin Warsh was named the next US central bank chairman.
Gold continued to rise in spot trading, rising 6% to $4,944.58 per ounce.
Earlier, spot gold prices rose 5.01% to $4,893.35 an ounce after hitting a one-month low in the previous session. The precious metal hit a record level of $5,594.82 last Thursday.
highest level
Among other precious metals, spot silver prices rose 11.7% to $85.93 per ounce. It hit an all-time high of $121.64 last Thursday.
Platinum in spot trading rose 0.6% to $2,134.10 an ounce after hitting a record level of $2,918.80 on January 26, while palladium fell 0.5% to $1,711.
fair value
“Given the irrational market movements we’ve been witnessing for several weeks, it makes sense that this price is close to fair value,” said Kyle Rodda, senior market analyst at Specialty Group.
He added: “Prices are now returning to the levels seen in early late January for gold and silver.”
Rodda added: “As the market supported President Donald Trump’s nomination of Warsh as a relatively reliable figure, we saw the dollar move accordingly, which was the spark that triggered the collapse in precious metals prices.”
