The unwinding of gold and, subsequently, silver prices came after a dramatic surge that had seen precious metals hit all-time highs.
Investors had been rushing into gold and silver due to fears of geopolitical instability, currency debasement, and threats to the Federal Reserve’s (Fed) independence, with speculative buying from China further fuelling the move.
A decision by United States (US) President Trump to nominate Kevin Warsh as the incoming Fed chair prompted investors to retreat from safe-haven trades on the last trading day of January.
Golden opportunity?
So, should investors take profits in gold stocks or double down amid the downturn?
Ord Minnett’s David Lane remains bullish on a few gold players: