Precious Metals Volatility Triggers Market Impact

On February 2, according to Jin10, volatility in gold and silver has led to significant disruptions in the commodities market. Seo Sang-Young, an analyst at Seoul Mirae Asset Securities, noted that this volatility has caused liquidity shocks and margin calls among institutional investors, resulting in a sharp decline in the stock market. Christopher Wong, a strategist at Singapore's OCBC Bank, explained that the ongoing sell-off in precious metals reflects a combination of technical and sentiment pressures. Despite a price decline following the correction, sensitivity to the U.S. dollar's movement, yield repricing, and uncertainty surrounding Federal Reserve policies remains high. Additionally, passive selling related to margin calls and triggered stop-loss orders have further amplified the downturn.