Gold and Silver ETFs Plummet on Hawkish Fed Comments
Precious metals ETFs took a hit at the end of last month as investors adjusted their positions on interest rates following Federal Reserve Governor Kevin Warsh's comments at the Jackson Hole symposium.
The comments were seen as hawkish, leading to a sell-off in gold and silver prices. Some gold and silver ETFs lost more than 3% during the session, with the opportunity cost of holding non-yielding assets like gold and silver increasing as expectations of higher interest rates rose.
New Pacific Metals Corp., an exploration firm listed on the NYSE American (NEWP) and TSX (NUAG), will be closely watching developments in metal prices, which directly affect their valuations and project economics. Sustained declines could impact financing prospects and operational planning for these companies.