Last week, the correction and consolidation phase in precious metals arrived, with gold breaking its nine-week winning streak, according to ABC Bullion.
Gold fell almost 4% in US dollars from the LBMA PM price of US$4,294 per ounce, set earlier in the week on 20 October, while the intra week decline was as much as 8% – the sharpest decline seen in more than 13 years.
Meanwhile, the correction in silver was even more severe, with the whitish-grey metal trading below US$49 per ounce, after hitting US$54 per ounce.
As Mining.com.au reported, silver’s price jump earlier this quarter was boosted by expectations of further US Federal Reserve rate cuts, creating a bullish environment for silver.
ABC Bullion reports that no asset goes up in a straight line, even if the fundamentals underpinning the precious metals market remains as sound as ever.
As such, long-term investors are likely to be treating this pullback as an ‘opportunity’ to accumulate exposure at more reasonable price levels.
Gold sat at US$4,109 per ounce at the time of writing, while silver slipped to around US$48.5 per ounce.
Over the past month, gold’s price has risen 9.65% and is up 49.65% compared to the same time last year, according to Trading Economics.
The yellow metals’ cousin, silver, has risen 7.35% over the past month and is up 44.02% compared to the same time last year.
Write to Aaliyah Rogan at Mining.com.au
Images: ABC Bullion
