The markets are reeling from uncertainties as the major commodities, including gold, bitcoin, silver, and oil slump in global “meltdown.”
As reported by Reuters, gold dropped 9 percent to its lowest point in more than two weeks.
On the other hand, silver slid more than 13 percent after its 30 percent fall in the previous session, thereby living up to its nickname of the “Devil’s Metal”.
Bitcoin price also dropped drastically to around $77,000, wiping out Trump’s era gains related to cryptocurrency and deepening the investors’ crisis of confidence.
The recent losses have plunged bitcoin to its lowest level since April when Trump’s sweeping tariffs sent shockwaves across the global markets.
Similarly, oil markets also tumbled to 5.5 percent on the account of US-Iran de-escalation. London Metal Exchange copper fell almost 5 percent.
Platinum has slumped by 10 percent this morning to $1,945 an ounce. The US dollar is on the upward trajectory as it has jumped by 1 percent against the rival currencies.
The slump in major assets and commodities came when US President Donald Trump chose Kevin Warsh as the next Fed Chair, replacing Jerome Powell.
Vivek Dhar, a commodities strategist at Commonwealth Bank of Australia (CBA), said, “The decision by markets to sell precious metals alongside U.S. equities suggests investors view Warsh as more hawkish.”
“A stronger U.S. dollar is also adding pressure on precious metals and other commodities, including oil and base metals,” he added.
KCM Chief Trade analyst Tim Waterer argues the selloff goes deeper, stating, “The Warsh nomination, whilst likely being the initial trigger, did not justify the size of the downward move in precious metals, with forced liquidations and margin increases having a cascading effect.”