Sharp pullback erases trillions in value as broader selloff weighs on risk assets.
Gold and silver fell sharply today, reversing from record highs as investors locked in profits following an extraordinary rally in precious metals.
Gold dropped nearly 5% to around $5,100 after topping $5,500 a day earlier, while silver slid about 10% to near $107 after surging to $120 in early trading.
The pullback wiped out an estimated $2.7 trillion in gold market value and roughly $800 billion in silver. Gold remains up about 20% over the past month, while silver has risen nearly 50%, underscoring how stretched the rally had become.
The move came alongside a broader selloff across global markets. The S&P 500 fell about 1%, while the Nasdaq dropped nearly 2% as technology stocks weakened. Bitcoin also slid roughly 5%, falling back to around $85K, a level last seen in mid-December.
Profit taking followed a period of intense demand for precious metals from both institutional and retail investors, including central banks and crypto-native capital. Analysts said the rally had pushed positioning to extremes, leaving prices vulnerable to a sharp correction.
Geopolitical tensions added to volatility after US President Donald Trump pressed Iran to negotiate a nuclear deal, prompting threats of retaliation from Tehran. Markets also reacted to monetary policy uncertainty after the Federal Reserve held interest rates steady.
Investors are awaiting Trump’s announcement of a replacement for Fed Chair Jerome Powell ahead of an expected rate cut later this year.
At press time, metals had recovered modestly, with gold trading near $5,250 and silver around $112. Traders said profit-taking remains a risk as markets digest the scale of recent gains.