Analyst: Profit-taking and hedging activities may contribute to the selling of precious metals such as gold and silver

Odaily Planet Daily reported that the sharp decline in gold and silver this week began with news that Trump would nominate Waller as the new Federal Reserve Chair. Deke Malaki, Managing Director of SLC Management, stated that Waller’s background has hawkish tendencies, which reduces the risk of a comprehensive dollar depreciation. The market is returning to an orderly monetary policy track. Additionally, analysts mentioned that traders who quickly took profits at the end of the month, or banks hedging against sudden declines, may have also contributed to this sell-off of precious metals. Adrian Ash, Head of Research at BullionVault, said he has been involved in the precious metals market for 20 years and has never seen a situation like this. However, he downplayed the possibility of retail investors suddenly withdrawing funds on Friday and pointed out similar abnormal movements in base metals markets, such as copper futures dropping 4.5% on Friday. Ash also mentioned that looking only at gold and silver, it’s easy to say this is retail frenzy, but the base metals market does not have retail participation. (Jin10)