Gold and Silver Face Historic Selloff
Friday witnessed a sharp downturn in the precious metals market. Spot gold prices plunged, heading for their worst single-day drop since 1983, while silver recorded its largest daily decline in history.
The collapse was primarily driven by a strengthening US dollar following the announcement of the next Federal Reserve chair by the Trump administration, which triggered a broad reassessment of monetary policy expectations.
Profit-Taking Triggered by Multiple Factors
Analysts noted that the selloff was not due to a single catalyst but rather a confluence of macroeconomic variables. Key drivers included rising dollar strength and shifts in real yield expectations.
Suki Cooper, Head of Global Commodities Research at Standard Chartered Bank, said the profit-taking behavior in the precious metals market reflected investor sensitivity and uncertainty toward the current economic environment.
Broader Market Pressure
The sell-off extended beyond gold and silver, affecting other precious metals as well. Investor sentiment turned cautious, and near-term movements will likely depend on further macroeconomic developments and policy signals.
- Gold prices hit biggest daily drop since 1983
- Silver records worst single-day loss in history
- Stronger dollar and Fed policy expectations as key triggers
- Analysts cite multi-factor driven profit-taking behavior