Market Turmoil: Precious Metals Under Pressure

Gold and silver prices face continued pressure as increased CME margin requirements compound selling pressure. Gold was down 2.3% and silver lost 3.8%. The recent selloff was influenced by Kevin Warsh's nomination as Federal Reserve chair, impacting gold's performance and currency valuation.

Gold and silver prices struggled to stabilize on Monday after facing heightened selling pressure due to the CME's increased margin requirements. This development followed last week's market turbulence, triggered by the nomination of Kevin Warsh as the forthcoming chair of the Federal Reserve.

Spot gold dropped by 2.3% to $4,754.51 per ounce as of 1319 GMT, recovering some losses from an earlier near 10% plunge. Meanwhile, U.S. gold futures for April rose by 0.7% to $4,777.70 per ounce. Spot silver, which initially fell by 15%, was down 3.8% at $81.41 after rebounding modestly.

Market analysts warn that the uptick might be temporary, with further volatility expected. The increased margin requirements are heightening the cost of speculative positions, affecting retail participation. The dollar's strength, underpinned by Warsh's expected policy moves, is contributing to the precious metal's current valuations.

(With inputs from agencies.)