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Gold, Silver Prices Plummet After Record Highs
30 Dec
Summary
- Gold futures dropped 4.5% and silver futures fell nearly 8%.
- Margin requirements hike and export restrictions fueled market jitters.
- Silver is crucial for electronics, solar panels, and EVs.
Precious metals, including gold and silver, saw their impressive rallies abruptly halted as futures prices tumbled. Gold futures dropped by 4.5%, settling above $4,340 per troy ounce, while silver futures experienced a steeper decline of nearly 8% after briefly touching $80 per ounce.
The sharp reversal followed increased trader anxiety, exacerbated by the Chicago Mercantile Exchange raising margin requirements for silver futures. Additionally, anticipated export restrictions from China, a major silver producer, beginning in January, heightened supply concerns amid the global demand surge for AI technology.
Silver's vital industrial applications, accounting for nearly 60% of its use, underscore its importance for electronics, solar panels, and electric vehicles. The Silver Institute noted the metal is in its fifth year of a global deficit and was recently placed on the US critical minerals list, raising fears of trade restrictions.
