Precious Metals Market Sees Sharpest Decline in Weeks
Long queues formed outside precious metals shops in Seoul’s Jongno 3-ga district this week as gold prices unexpectedly plummeted. “If you’re not planning to buy today, please step aside quickly,” shouted a shop employee managing the crowd of anxious investors on Thursday afternoon. Though typically a busy location, the scale of inquiries about selling gold reached unprecedented levels this week.
Investor Reactions Split Between Immediate Action and Patience
Faced with rapidly declining values, customers voiced conflicting strategies. “Is now the right time to sell?” and “How much further will prices drop?” echoed through the store as silver prices simultaneously fell 31.4% from recent highs. One shop owner advised a hesitant seller: “Looking at long-term trends, prices could rebound – but timing is crucial.”
Market data shows COMEX gold futures fell to $85.3 per troy ounce on Thursday morning, down from $120 just days prior. Silver futures followed the downward trend, dropping from $5,600 to $4,870 per troy ounce before stabilizing near $4,870.
The Psychology Behind Precious Metals Volatility
“Compared to normal days, selling inquiries increased by 20-30% this week,” observed one veteran shopkeeper. “Many investors who bought high are now rushing to minimize losses through panic selling.”
Other investors took a measured approach. Park Mo (32), waiting to sell silver holdings, commented: “I’ve debated selling for two months now. While prices could drop further, historical patterns suggest precious metals eventually recover.”
Market Analysts Divided on Future Outlook
Financial experts cite multiple factors driving the volatility:
Global Economic Pressures Mount
Reports indicate stronger U.S. dollar policies and Federal Reserve interest rate decisions have impacted precious metals markets worldwide. CME Group’s recent margin requirement increases for gold futures contributed to selling pressure, creating a domino effect that triggered margin calls and forced liquidations.
Meanwhile, institutional analysts maintain a cautiously optimistic long-term view. “Central banks continue purchasing substantial gold reserves,” noted one financial strategist. “Current dollar strength may pressure prices temporarily, but gold’s historical role as an inflation hedge remains valid.”
Retail Investors Face Critical Decisions
At the retail level, divergent strategies emerged. “Investors who bought physical gold as a ‘safe asset’ now face difficult choices,” explained a shop manager handling transactions. “Some see this dip as a buying opportunity, while others can’t withstand further declines.”
As markets closed Thursday, gold showed slight recovery signs while silver remained volatile. With no immediate resolution to global economic uncertainties, Jongno’s precious metals shops expect continued investor turbulence in coming weeks.
