What's behind gold's plunge?
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Gold continues to lose value sharply while silver slides again too. Live from the UK, this is the Marketplace Morning Report from the BBC World Service. Hello, I'm Nick Rashi. After a historic rally, gold has seen its biggest drop in more than a decade. Silver is also down after sharp swings in Asia trading. The past two years have seen a remarkable rise in value for both precious metals, fuelled by lower interest rates, a weak US dollar and global uncertainty. However... Gold remains significantly up in value compared to early 2024. BBC's Nick Marsh has more for us from Singapore. So what is behind this rapid decline, Nick?
Well, it started on Friday last week when there was some really big drops, about 10% in the price of gold. That was linked to a couple of things.
What caused gold's significant drop in value?
President Trump confirming that he's appointing someone called Kevin Walsh as the new chair of America's central bank, the Federal Reserve. That caused the value of the dollar to go up a little bit because interest rates might not go down as much as previously expected. Also, he's seen as a A safe pair of hands and someone who might preserve the independence of the Federal Reserve, to put it in very sort of simplistic terms.
And where's this going from here after today, do we reckon?
I'm loathe to give predictions, to be perfectly honest with you, because if you'd told me that this would happen this time last week, I'd have been quite surprised. there was always the chance that there was going to be some kind of correction after two years, literally, of rise and rise and rise for various reasons, because of low interest rates, because of very chaotic US trade and foreign policy, you know, a year of tariffs and market turmoil and that sort of thing. And that all leads investors to want to invest more in precious metals because they're seen as safe havens.
What factors contributed to the recent rise in precious metals?
and also central banks. I mean, the China Central Bank has been buying so much gold bullion for its reserves. Lots of Chinese private investors have been doing the same. And it's important to keep it in perspective. An ounce of gold today is still worth more than double what it was two years ago, this time two years ago. So in the main, gold has really increased a huge amount. It's just now we are seeing a a pretty sharp drop, but nowhere near enough to wipe the gains that it's made over the last two years. So if you're going to ask me for a prediction as to what's going to happen after this, I think I'm going to have to politely decline, Nick. I'm sorry.
Nick Marsh, thanks for joining us on Marketplace. Thank you. All right, let's do some numbers. The price of Bitcoin has dropped again. The cryptocurrency is trading around $75,000, down 2.4%, a nine-month low. And oil prices down too, as US Iran tensions appear to be easing. Both main crude contracts shed more than 5% at one point. In Japan, it's estimated one in five people over the age of 65 are living with dementia or early symptoms of the condition. The challenge may seem overwhelming, but local tech companies are trying to step in to help those in need. The BBC's Suranjana Tiwari has more.
How did President Trump's nomination affect gold and silver prices?
In a lab at Tokyo's Waseda University, half a dozen humanoid robots are being tested to perform various tasks. The idea is that they'll become future caregivers for those seeing a decline in capabilities and to solve a chronic shortage of care workers. IREC is a 150kg humanoid robot that can already handle several tasks, from nursing care like changing positions and putting on socks, to daily housework like scrambling eggs and folding laundry. Assistant Professor Tamon Miyake says developing such robots takes incredible precision.
It's extremely challenging because robots must precisely control the force they apply when interacting with people. That requires full body sensing and adaptive understanding.
But robots like IREC are still prototypes. Researchers here say it may take another five years before they can provide physical care. Here's Tamon Miyake again.
Robots should supplement, not substitute human caregivers.
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