Precious metals markets deepened their losses on Monday, as gold declined 5 per cent and silver tumbled over 10 per cent following Friday’s record-breaking plunge.
Spot gold fell to $4,611.4 per ounce after a near-10 per cent drop the previous day that breached $5,000. Silver slid more than 10 per cent to $76.1138 per ounce by late Wednesday ET, extending its 30 per cent nosedive— the worst since March 1980.
The sell-off stemmed from a stronger dollar and profit-taking after recent record highs, triggered by President Donald Trump’s nomination of Kevin Warsh to succeed Federal Reserve Chair Jerome Powell.
“The ‘Buy America’ trade is back as a result, and the independence bid that drove gold and silver to nosebleed record heights right below $5,600 and $122 per ounce early Thursday morning is unraveling,” said José Torres, senior economist at Interactive Brokers.
Warsh’s hawkish stance lifted the dollar index 0.8 per cent since Thursday, curbing appeal for overseas buyers, while Trump’s Iran deal hints eased safe-haven demand and cut WTI crude futures 4 per cent.
“Gold’s retreat is a ‘classic air-pocket after an extraordinary run’,” said Christopher Forbes of CMC Markets. “Profit-taking, a firmer dollar, and fresh geopolitical headlines from Washington have knocked froth off a crowded trade.”
Silver remains 16 per cent up year to date and gold 8 per cent higher, after 2025 gains of 65 per cent and 145 per cent respectively.
“Renewed dollar weakness or confirmation of a dovish Warsh would bring dip-buyers back,” Forbes added, staying bullish over 12 months if Fed easing continues amid uneven growth.