1. Short Description:
Gold and silver prices crash in a global sell-off, dragging mining stocks and ETFs lower. Analysts point to market overcrowding and shifting Federal Reserve speculation.
2. Read Time:
2 minutes, 15 seconds
3. Main Article:
A dramatic sell-off gripped the precious metals market on Friday, sending gold and silver prices plunging and sparking a global downturn for related stocks and funds. Spot silver crashed by 15% to fall back below the critical $100 per ounce milestone, while spot gold dropped 7%. The precious metals rout extended to platinum and palladium, and hammered shares of major mining companies like Fresnillo, as well as popular ETFs such as the iShares Silver Trust.
Analysts attributed the sharp reversal to a market-wide reassessment of concentrated risk. “When everyone is leaning the same way, even good assets can sell off as positions get unwound,” noted Katy Stoves of Mattioli Woods, drawing parallels to crowded tech trades. The sell-off follows a historic, multi-year rally for both metals, driven by a declining U.S. dollar, geopolitical tensions, and sustained central bank buying. However, recent stability in the dollar and a tail-off in central bank demand have removed key price supports.
Further fueling the volatility is intense speculation over U.S. Federal Reserve leadership. Prices had been buoyed by expectations of a dovish successor to Chair Jerome Powell. “Over the last 24 hours, the news flow has changed a little bit,” said FX strategist Claudio Wewel, suggesting the market is recalibrating as President Donald Trump’s announcement of a new Fed chair nears. This highlights how metal markets remain acutely sensitive to U.S. monetary policy outlook and global risk sentiment, leading to pronounced corrections after parabolic rallies.
4. Short Summary:
Gold and silver experienced a severe correction, ending a massive rally. The drop highlights how even strong assets can sell off amid overcrowded trades and shifting macro narratives, particularly around Federal Reserve policy. Investors should expect continued volatility in precious metals as markets digest these rapid price movements and changing fundamentals.
