Gold and silver prices have recorded a sharp decline today, after a long period of rapid growth that took the precious metals to record levels.
Gold fell below $5300 an ounce, while silver fell from a record high of nearly $120 to $110. This is a signal that, as analysts warn, the price increase has entered a "dangerous phase."
Currently, the price of gold is $5355 per ounce, while silver is just over $115.90.
This market turn has prompted investors to be cautious after months of growth driven by demand from China, central bank purchases and geopolitical tensions, reports Yahoo Finance.
The decline came after prices reached historic highs, prompting a wave of profit-taking selling.
Analysts point out that this correction was expected, given the speed and strength of the previous growth.
"There is less and less room for further increases in gold and silver prices after recent records," said Carsten Fritsch, an analyst at Commerzbank.
"It's clear that investors are taking profits and all the growth is based on uncertain fundamentals," he added, pointing to the fact that investors in exchange-traded funds (ETFs) have not joined the trend as a warning sign.
The fall in precious metal prices has also been influenced by external market factors. The strengthening of the US dollar and rising US bond yields have increased pressure on gold, which does not bring profit and becomes less attractive to investors in an environment of higher interest rates.
At the same time, slowing demand in key Asian markets has slowed the pace of growth.
Some analysts see this decline as a healthy correction after the big rise, while others warn of the possibility of further declines if the speculative buying that has dominated the market in recent months subsides.
However, the long-term outlook for gold and silver remains positive, supported by continued central bank purchases and rising geopolitical risk. However, in the short term, increased volatility in the precious metal market is expected. /Telegraph/
