Gold Prices Plummet Amid Global Market Volatility

Gold Prices Plummet Amid Global Market Volatility

In a sudden and dramatic turn of events, the international gold price has plummeted, with the New York Commodity Exchange (NYMEX) gold futures contract falling 1.76% to $2893.7 per ounce, while silver futures contracts dropped 0.22% to $32.655 per ounce.

The London gold spot price also saw a significant decline of 1.54%. Yesterday evening, the gold price performed what can only be described as a 'high-dive jump' before suddenly plummeting and eventually falling over 60 dollars from its previous high point.

According to recent data releases, US retail sales took a sharp drop of 0.9%, the largest decline in two years - sparking market expectations for a rate cut by the Federal Reserve. However, despite this major data release, gold prices only saw a symbolic increase of a few dollars before entering into a downtrend.

According to a recent survey, Wall Street professional analysts remain optimistic about gold prices, with 71% expecting an upward trend, 14% predicting a decline, and 14% anticipating a neutral outcome.

Major banks have been issuing risk warnings in rapid succession. On February 12th, the Industrial and Commercial Bank of China (ICBC) and the Bank of Communications simultaneously released announcements warning of increased risks in the precious metals market.

In their announcements, the two major banks highlighted the recent sharp fluctuations in precious metal prices, emphasizing that investors must be aware of the rising market risk and strengthen their understanding of the gold market's price trends. They also urged investors to exercise caution and control their positions rationally to avoid market risks.

Prior to this, the Shanghai Gold Exchange had also notified all member units about adjustments to contract margins and price limits for certain products.

The notice stated that from February 12th onwards, the margin levels for Au(T D), mAu(T D), and Au(T N2) would be adjusted from 10% to 11%, while the price limit for the next trading day would be adjusted from 9% to 10%. The margin level for Cu99.99 contracts would also increase from ¥65,000 per hand to ¥70,000 per hand.

The Shanghai Gold Exchange emphasized in its notice that member units must strengthen their risk awareness and develop detailed contingency plans to address any potential risks, while also urging investors to exercise caution and control their positions rationally.

A reporter's investigation found that the Bank of Communications and the China Construction Bank have also recently issued warnings about the gold market's trends, advising investors to be cautious when making investment decisions and to control their positions rationally.