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Gold and silver prices have experienced their sharpest drop in recent years as investors began selling precious metals after their value soared. About writes Bloomberg.

The spot price of gold fell by 6.3%, the biggest drop in more than 12 years. Silver fell by 8.7%.

Shares of the leading gold mining companies – Barrick Mining, Newmont and Agnico Eagle Mines – fell by more than 8% on Tuesday morning, October 21.

The sharp decline halted the record-breaking rally that had been going on in recent weeks. Metals rose amid expectations that the US Federal Reserve would cut interest rates, as well as fears of a "depreciating" dollar.

The drop in prices is attributed to several factors: a stronger dollar, signals of a possible resumption of trade talks between the US and China, and a technically overheated market.

Experts note that the US budget deficit, political instability and concerns about the central bank's independence had pushed investors to buy gold, but now some of them have decided to take profits.

  • On October 8, the price of gold for the first time in history exceeded $4000 per ounce. Its value has increased by more than 50% since the beginning of the year.
  • October 14, silver price on Monday set a new historical record, exceeding $53 per ounce in London trading.