Gold and silver prices experienced a significant overnight plunge, according to ANZ, as investors moved to secure profits following a historic rally. The sharp downturn marks the steepest selloff witnessed in over a decade. Spot gold prices plummeted as much as 6.3 per cent during the trading session, abruptly halting a surge that had propelled prices to record highs throughout the preceding week. This marks the sharpest fall in over 12 years for the precious metal.
Since the beginning of September, gold had increased in value by 26 per cent, driven by anticipation of aggressive interest rate cuts by the US Federal Reserve, combined with increased geopolitical and economic uncertainty. ANZ noted that the absence of the CFTC’s weekly positioning report, resulting from the ongoing US government shutdown, has created difficulty in assessing speculative activity. The bank believes that speculative positions had built to substantial levels, ultimately triggering the selloff.
ANZ is one of Australia’s largest banks. It provides a range of banking and financial products and services to retail, commercial, and institutional customers. Despite the recent pullback, ANZ maintains a confident outlook on the long-term fundamentals of gold. The bank stated that key drivers supporting prices remain in place, anticipating a market stabilisation in the near term.
