Core Viewpoint - Silver prices have experienced significant volatility, with a sharp decline following a record rally, raising concerns about market stability and investor sentiment [1][2][3]. Group 1: Market Performance - Spot silver fell as much as 17% to approximately $73 an ounce during Asian trading, later recovering to about 11% down mid-morning in Europe [2]. - Silver has retreated over a third from its all-time high reached last week, indicating a substantial market correction [2]. - Precious metals, including gold, have seen their largest daily drops recently, with gold experiencing its most significant decline since 2013 [3][4]. Group 2: Investor Behavior - Investors had accumulated large positions in precious metals, leading to a cascade of selling when prices began to fall, resulting in continued volatility [5]. - The recent price swings in silver are attributed to heavy speculative inflows and thinner trading conditions in the over-the-counter market [6]. Group 3: Market Dynamics - The decline in precious metals has negatively impacted sentiment in base metals markets, with copper prices also falling [4]. - Higher prices have strained credit availability for precious metals trading desks, contributing to further market volatility [7]. Group 4: Monetary Policy Implications - Markets are currently assessing the implications of Kevin Warsh's nomination as Federal Reserve chair, with expectations that the Fed may lower interest rates, which could support precious metals [8]. - Analysts predict that gold prices will remain volatile until there is more certainty regarding monetary policy, although structural drivers for precious metals remain intact [9].

Group 1 - European stocks are expected to open flat to lower, with the U.K.'s FTSE and Germany's DAX projected to decline by 0.25% [1] - A busy day of earnings reports in Europe includes major companies such as Shell, BBVA, BNP Paribas, and BMW among others [2] - The European Central Bank and Bank of England are set to publish their monetary policy decisions, with no changes expected to current interest rates [2] Group 2 - Global markets have faced turbulence, with Wall Street experiencing a second consecutive day of losses, particularly in software stocks [3] - S&P 500 futures rose following corporate earnings reports, including results from Alphabet, with Amazon's quarterly results expected soon [3] - In Asia-Pacific markets, South Korean stocks led declines, reflecting the tech sell-off trends from Wall Street [3] Group 3 - Data releases in Europe include German factory orders, French industrial production, and EU retail sales [4]

Core Viewpoint - Precious metals, particularly silver and gold, experienced significant declines, with silver plunging nearly 17% and gold dropping over 3%, largely due to a strengthening dollar and easing geopolitical tensions [1][2][3]. Market Impact - Indian markets were heavily affected, with MCX silver March futures falling over 8% and MCX gold trading 1% lower. Equity markets also suffered, with Axis Silver ETF collapsing by up to 21% and Nippon India Silver ETF dropping 13% [2][14]. Reasons for Price Decline - **Strengthening Dollar**: The dollar reached a near two-week high, making dollar-priced gold more expensive for foreign currency holders, thus reducing demand for precious metals [3][14]. - **Geopolitical Easing**: Reduced tensions, particularly between the US and Iran, diminished gold's appeal as a safe-haven asset [6][14]. - **US-China Relations**: A positive phone call between US President Trump and Chinese President Xi Jinping alleviated concerns about escalating economic tensions, further dampening demand for safe-haven assets [8][14]. Analyst Perspectives - Some analysts view the selloff as a healthy consolidation rather than a trend reversal, suggesting that the broader uptrend for gold remains intact despite recent volatility [10][15]. - Others express caution, indicating that the decline in silver and other metals may continue, with MCX Silver March prices expected to drop to ₹235,000/kg amid weak international trends [11][15]. Tactical Guidance - Recommendations include buying gold above ₹154,000 with a target of ₹156,800-₹158,500 and silver above ₹270,000 with a target of ₹278,000-₹284,000, indicating potential recovery points [12][15]. - Analysts from Standard Chartered expect continued volatility in gold prices until there is more certainty regarding monetary policy, while structural drivers for precious metals remain intact [13][15].

Market Overview - Spot silver experienced a significant decline, dropping as much as 16.6% on Thursday after briefly recovering above $90 an ounce in early Asian trading. Spot gold also fell, decreasing by as much as 3.5% in volatile trading conditions [1][7]. - The sentiment across various asset classes, including regional equities and metals, has turned negative, indicating fragile market conditions and creating a feedback loop amid low liquidity [1][7]. Recent Trends in Precious Metals - Precious metals had previously surged due to speculative momentum, geopolitical tensions, and concerns regarding the independence of the US central bank. However, this rally abruptly ended last week, with silver experiencing its largest daily drop ever and gold its most significant decline since 2013 [2][7]. - Analysts from Standard Chartered Plc noted that price volatility is expected to continue until there is more clarity on monetary policy. They indicated that some of the recent volatility is due to investors redeeming holdings in exchange-traded products, but structural drivers for precious metals remain strong, suggesting a potential recovery [6][7]. Federal Reserve Policy Implications - The market is currently assessing the implications of Kevin Warsh's nomination as Federal Reserve chair. President Trump indicated that he would not have nominated Warsh if he had shown a desire to increase interest rates, suggesting that the Fed is likely to lower rates again, which would benefit precious metals that do not yield interest [3][7].

The report stated that, despite earlier policy-rate easing, the central bank will hold rates this time, as several macroeconomic and global factors continue to pose challenges.It noted that government bond yields have shown persistent hardening in recent periods, even after policy rate easing.According to the report, the effectiveness of This, it said, could limit the transmission of monetary policy actions, so Live EventsYou Might Also Like:Government borrowing will be the decider factor in whether MPC ca ...

Bitcoin fell to its lowest level since the post election rally before recovering after U.S. lawmakers approved a short term government funding package, easing immediate shutdown risk but leaving markets cautious. Bitcoin dipped to about $72,900 before rebounding as the U.S. House narrowly passed a $1.2 trillion funding bill that ended a partial government shutdown, according to market commentary published Tuesday by QCP Capital. The move reduced near term political uncertainty and helped stabilize prices ...

Group 1: Market Reactions - An index fund tracking Indian shares, the $9.4 billion iShares MSCI India ETF, experienced its largest gain since May, attributed to a trade deal with the US that will lower tariffs on Indian goods from 25% to 18% [1] - MSCI's gauge for developing-nation equities fell by as much as 2.9%, marking the most significant decline since April, while South Korean stocks saw a notable drop with the Kospi index down 5.3% [2] - The overall market selloff was influenced by a dramatic decline in various asset classes, including global equities and precious metals, following President Trump's nomination of Kevin Warsh to lead the Federal Reserve, which strengthened the dollar [3] Group 2: Currency and Bond Markets - MSCI's gauge for currencies decreased by approximately 0.4%, with the South Korean won underperforming, while Latin American currencies, particularly the Colombian peso, outperformed after a 100-basis point rate hike by the Colombian central bank [4] - Morgan Stanley strategists indicated that Trump's nomination of Warsh does not signify the end of the rally in emerging-market currencies and local bond markets, suggesting that investors should consider buying dips due to solid fundamentals [6] - Poland is planning a return to the Japanese bond market with a multi-tranche Samurai issue to meet its increasing borrowing needs, while Argentina is opting not to sell bonds in global markets due to access to alternative funding sources at lower interest rates [8]

Core Insights - Gold and silver experienced significant price fluctuations, with gold falling as much as 6.3% and silver dropping to around $75 an ounce after reaching record highs [1][2] - The recent selloff was triggered by the nomination of Kevin Warsh to lead the Federal Reserve, which strengthened the dollar and negatively impacted precious metals [3] - A crowded trade in precious metals, driven by geopolitical concerns and speculative buying, has led to extreme volatility and risk in the market [2][4] Price Movements - As of 9:21 a.m. Singapore time, gold was priced at $4,680.76 an ounce, down 4.4%, while silver declined 2.2% to $83.2965 [5] - The Bloomberg Dollar Spot Index rose 0.1% after a previous gain of 0.9%, indicating a stronger dollar [5] Market Dynamics - The surge in precious metal prices over the past year was fueled by concerns over geopolitical instability and currency debasement, with significant buying from Chinese speculators [2] - The market's volatility was exacerbated by a record wave of call option purchases, which created upward price momentum as sellers hedged their positions [4]

The ECB, which also publishes quarterly surveys on bank lending and professional forecasters’ economic views in the coming week, is one of a dozen central banks due to set rates. The UK, Mexico and the Czech Republic are also expected to hold, while India and Poland may cut. Australia’s RBA might become the first major central bank to hike this year.“Europe has had a geopolitically turbulent start to the year, and the ECB will likely continue to focus on the forest instead of the trees. That means it will p ...

Benzinga examined the prospects for many investors' favorite stocks over the last week — here's a look at some of our top stories.U.S. stocks ended a volatile week under pressure after President Donald Trump nominated former Federal Reserve governor Kevin Warsh as the next Fed chair, unsettling investors already on edge from inflation concerns and mixed earnings. The Dow Jones Industrial Average, S&P 500 and Nasdaq Composite all slid as the announcement triggered a sharp reversal in currency and commodity m ...