Precious Metals Prices: Gold, Silver Extend Declines

Summary

Gold and silver extended declines after a historic selloff, with Martin Ritchie saying some speculative froth has cleared and markets are watching for dip buyers. He highlighted unprecedented Chinese metals trading activity, especially record copper volume on the Shanghai Futures Exchange. Ritchie also noted that funds and influential commentators remain bullish on copper and base metals long term due to energy transition and electrification demand.

• Gold posted its biggest drop in decades and fell more than 5% again.
• Silver also sank, reversing a record-breaking rally.
• Markets are watching for dip-buying levels, especially from Chinese investors who have not yet returned.
• Chinese metals trading activity was unprecedented, with record copper volume on the Shanghai Futures Exchange.
• Funds and influential commentators remain bullish on copper for the long term.
• Copper's role in energy transition and electrification supports the long-term investment case.
• Near-term demand headwinds are being set aside for base metals exposure.