Gold and silver prices continued to decrease on Monday due to higher margin requirements at CME Group, following a significant decline the previous week after Kevin Warsh was nominated as the next Federal Reserve chair. Spot gold was down 3% at $4,718.35 an ounce, having previously dropped nearly 10%. U. S. gold futures for April delivery remained stable at $4,740.90 an ounce. Gold fell 9.8% on Friday, losing around $900 from its record high of $5,594.82 on January 29.
Analyst John Meyer noted that gold and silver are experiencing extreme volatility. Spot silver decreased by 3.3% to $81.75 an ounce, dropping about 32% from its recent high of $121.64. Despite the decline, analysts warned against interpreting this as a sign of a long-term downturn in gold prices. CME Group announced a rise in margin requirements for precious metal futures. The dollar index rose, making dollar-priced bullion more expensive for international buyers. Platinum fell by 1.4% and palladium by 2.7%.
With information from Reuters
