Precious Metals Face Selling Pressure as Liquidity Issues Intensify
Silver prices tumbled sharply during Thursday's Asian trading session, erasing gains from the previous two days, while gold prices also declined in tandem.
Christopher Wong, strategist at OCBC Bank, noted that broad-based weakness in market sentiment has made assets ranging from regional equities to metals highly vulnerable, highlighting the fragile market environment.
Policy Outlook Fails to Stabilize Short-Term Volatility
Despite former President Trump's assertion that further Fed rate cuts are 'almost certain,' which should theoretically support non-yielding assets like precious metals, market volatility remains driven by uncertainty in monetary policy direction.
- Liquidity constraints amplify price swings
- Investor confidence remains fragile
- Short-term redemptions exacerbate market instability
Sudakshina Unnikrishnan from Standard Chartered pointed out that while redemptions through exchange-traded products (ETPs) intensified short-term volatility, structural underpinnings remain intact.