Precious Metals Shine Amid Global Stock Volatility

Gold and silver prices fluctuated amid global stock market volatility, as CME raised margins to manage risks. While gold saw a slight increase, silver experienced significant volatility. Analysts suggest risk sentiment is declining, but expect possible increased buying due to the Chinese New Year.

Amid a global stock market rout, gold prices saw a modest increase on Friday, while silver grappled with sharp volatility. The U.S. exchange operator CME responded to heightened market risks by raising margins on precious metals for the third time this year.

Spot gold rose by 2.3% to reach $4,879.45 per ounce, marking a 0.3% increase for the week. U.S. gold futures for April slightly rose by 0.2% to $4,897.20 per ounce. Silver, however, saw more dramatic movements, rising 3.8% after earlier declines of about 10%, marking its biggest weekly drop since 2011.

Market analysts attribute the volatility to a declining risk sentiment. Despite the current volatility, analysts foresee potential increased consumer buying, especially in China, ahead of Chinese New Year celebrations.

(With inputs from agencies.)