S&P/TSX composite plunges more than 800 points, U.S. markets trading lower
BNN Bloomberg
Canada’s main stock index dropped nearly 1,000 points early afternoon Friday as the next nominee to lead the U.S. Federal Reserve prompted a sell-off in precious metals.
“You’re seeing metals retreat for the first time, and I’d say a bit of a meaningful retreat,” said Allan Small, senior investment adviser at iA Private Wealth.
The S&P/TSX composite index was down 992.37 points at 32,023.76.
The April gold contract was down US$348.80 at US$5,006.00 an ounce on Friday.
However, when looking at the past year, gold prices have risen more than 70 per cent.
Small said it appears that the decline in metal prices on Friday was a reaction to an announcement by U.S. President Trump that Kevin Warsh will be his choice to replace Jerome Powell as U.S. Federal Reserve chair.
