We are witnessing significant instability in the precious metals sector, as highlighted by a recent graph from the Financial Times. It appears that speculative traders have taken control of the market narrative, effectively pushing institutional investors to the sidelines for the moment. Current trading figures show a 5% loss for gold and a more severe 10% decline in silver values.

It is clear that while fundamental elements drove the initial impressive price surges for these commodities, those gains attracted a heavy influx of speculative interest. Consequently, the major uncertainty now revolves around the duration of this correction and the extent of the potential fallout. In the energy sector, oil has also retreated, with Brent dropping 5% in response to a minor relaxation in the typically high-stress relationship between the US and Iran.

#economy #markets #oil #gold #silver @FT