Profit taking accelerates as stronger dollar and Fed leadership shift weigh on metals.
Gold and silver extended their sharp declines today, deepening a correction that began after both metals surged to record highs earlier in the week. Gold, which topped $5500 for the first time on Wednesday, fell further below the $5000 level, while silver extended losses to more than 20%, sliding to around $92 an ounce.
The selloff followed a broad risk-off move on Thursday that hit stocks, crypto, and commodities. Gold plunged about 5% on Thursday to near $5,100, while silver dropped more than 10% toward $100.
While equities and crypto saw modest stabilization by Friday morning, precious metals continued to weaken.
Analysts described the move as aggressive profit-taking after an extraordinary run. Gold had gained roughly 20% over the past month, while silver had surged more than 50% over the same period, leaving positioning stretched and vulnerable to a sharp reversal.
The correction gathered pace after the US dollar strengthened following President Donald Trump’s announcement of his choice for the next Federal Reserve chair. Trump named former Fed Governor Kevin Warsh to succeed Jerome Powell when his term ends in May.
The dollar index rose about 0.4%, rebounding from a four-year low earlier in the week, making dollar-denominated commodities less attractive for overseas buyers.
Losses spread beyond gold and silver. Spot platinum fell about 15.5% to roughly $2,221 an ounce, while palladium plunged more than 12% to around $1,764, underscoring the breadth of the correction across the metals market.
Source: https://cryptobriefing.com/precious-metals-selloff-impact/
