Gold and silver prices experienced a notable decline on Friday, following impressive record highs just a day earlier. Investors took the opportunity to secure profits after a remarkable rally throughout the year. Spot gold prices fell by over 4% to $5,156.64 per ounce, while maintaining a strong year-to-date gain of approximately 20%. Industry expert Ed Yardeni, president of Yardeni Research, commented on the market dynamics, stating, “A correction back to $5,000 with some consolidation around that price would be a normal pattern in a bull market.” He noted that the meteoric rise from $3,000 to $5,500 occurred without significant corrections, suggesting that the market has experienced a “melt-up” rather than a conventional bull market.
Silver prices also took a hit, declining more than 5% to $110.26 per ounce. Despite the recent drop, silver’s price has surged by 53% since the beginning of the year, showcasing its ongoing appeal to investors.
In the Asia-Pacific region, markets reacted mixed to the news that U.S. President Donald Trump would announce his pick for the next Federal Reserve chair. This decision concludes a five-month selection process that included a diverse pool of candidates from various sectors, including past and present Fed officials and Wall Street analysts. Stock exchanges reflected this uncertainty, with South Korea’s Kospi increasing by 1.23% and the Kosdaq up by 0.99%. Japan’s Nikkei 225 and Topix indices recorded modest gains of 0.25% and 0.58%, respectively, while Australia’s S&P/ASX 200 rose by 0.23%. In contrast, Hong Kong’s Hang Seng index fell by 0.71%, alongside a 0.51% drop in the CSI 300 on the Chinese mainland.
In corporate news, Indonesia’s stock exchange leadership shifted, with the head stepping down amid concerns following an MSCI warning about a potential downgrade. Following the announcement, the Jakarta Composite index saw an increase of about 1%.
As geopolitical tensions continue to loom, oil prices also faced pressure. Following Trump’s indication of a potential dialogue with Iran, the global benchmark Brent crude dropped by 1.43% to $69.70 per barrel, while U.S. West Texas Intermediate futures fell by 1.65% to $64.33 per barrel. The mixed market reactions underscore a complex economic landscape where investor caution is balanced with the ongoing robust performances in precious metals.