“The bottom line is that the trade was way too crowded,” said Robert Gottlieb, a former precious metals trader at JPMorgan Chase & Co and now an independent market commentator, adding that a reluctance to take further risks would constrain market liquidity.
(Feb 2): Gold extended losses, after its biggest plunge in more than a decade on Friday, while silver’s year-to-date gains were wiped out as a record-breaking precious-metals rally unwound at breakneck speed.
Spot gold fell as much as 10% on Monday and is now down almost a fifth from an all-time high reached in the last-but-one session. Silver slumped as much as 16%, following on from an intraday loss on Friday that was the steepest on record.
