Gold and silver prices have experienced the sharpest decline in recent years – investors began selling precious metals after a rapid increase in their value.
The spot price of gold fell by 6.3% – the largest drop in over 12 years. Silver decreased by 8.7%.
Shares of leading gold mining companies – Barrick Mining, Newmont, and Agnico Eagle Mines – fell by more than 8% on Tuesday morning, October 21.
The sharp decline halted a record rally that had lasted for the past few weeks. Metals had been rising amid expectations that the U.S. Federal Reserve would lower interest rates, as well as concerns about the "devaluation" of the dollar.
The price drop is attributed to several factors: the strengthening of the dollar, signals of a possible resumption of trade negotiations between the U.S. and China, and a technically "overheated" market.
Experts note that the U.S. budget deficit, political instability, and concerns about the independence of the central bank had pushed investors to buy gold, but now some of them have decided to lock in profits.
It is worth mentioning that on October 8, the price of gold surpassed $4000 per ounce for the first time in history. Its value has increased by more than 50% since the beginning of the year. On October 14, the price of silver set a historical record, exceeding $53 per ounce in trading in London.
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