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Gold and silver sell-off accelerates as inflation fears grip global markets
Gold and silver joined a broad sell-off on Thursday, with the metals shedding around 5% and 10%, respectively, as fears about the Iran war and inflation gripped global markets.
Spot gold slid nearly 5% to below $4,600 an ounce. Front-month gold futures were down almost 6% at about $4,600.
Spot silver slid more than 6% to $70.22 an ounce, while silver futures lost more than 9% to settle at $70.29.
Mining stocks and exchange-traded funds linked to gold and silver also fell in premarket trading. The ProShares Ultra Silver ETF shed 20% ahead of Thursday's opening bell, while the iShares Silver Trust ETF — which was at the center of a so-called meme trade earlier this year — was down almost 10%. Aberdeen's Physical Silver Shares ETF was down 9.9%.
XAU/USD: Gold Prices Plunge $250 as Traders Rush to Raise Cash amid War Pressures
Not a great week to be a gold bull, that's for sure. Just make sure you don't FOMO back in now — here are the technical levels to watch.
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Iran war: Why gold prices are not soaring
Gold is typically seen as a safe haven, especially in times of war and other crises. Notwithstanding the ongoing war in Iran, the price is steady. What's driving the stability?
A well-known stock market proverb says: "Buy when the cannons are firing." In other words, in times of war and uncertainty, people should invest.
Those looking to protect their wealth and assets often turn to gold — even though gold is rarely cheap in turbulent times. In times of crises, such as a pandemic or a war, demand for gold typically rises. This stronger demand tends to push prices higher, as it did in the first weeks of this year.
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