Deutsche Bank’s report, authored by Jim Reid, highlights a major sell-off in pGold, with a decline of 8.95%, marking its largest daily drop since 2013. The report attributes this volatility to the nomination of Kevin Warsh as Fed Chair, which has raised hawkish expectations. The report also notes that Gold has seen a speculative element in its recent price movements, alongside a broader risk-off mood in the markets.
Volatility driven by Fed Chair nomination
“Welcome to February with another big sell-off in Gold (-5%) and Silver (-10%) overnight, and a partial US government shutdown that isn’t as severe as the record one before Xmas, and is expected to get resolved soon.”
“On Friday gold (-8.95%) posted its largest daily decline since 2013 (-1.87% over the week).”
“So while I’ve long been a bit of a gold bug given my strong views on the inflationary consequences of fiat money, the recent run up in precious metals feels to have an enormous speculative element
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