Gold and Silver Prices Decline Sharply Amid Market Correction

Gold and Silver Prices Decline Amid Market Correction

Gold and silver experienced significant declines today, continuing a correction that started after both metals hit record highs earlier this week. Gold, which reached a historic $5,500 on Wednesday, has fallen below the $5,000 mark, while silver dropped more than 20%, settling around $92 per ounce.

The downturn followed a broad market shift on Thursday that affected stocks, cryptocurrencies, and commodities. Gold saw a 5% drop to approximately $5,100, while silver decreased by over 10% towards $100.

By Friday morning, equities and cryptocurrencies showed signs of stabilizing, but precious metals continued to weaken.

Analysts attribute this trend to aggressive profit-taking following a remarkable surge. Over the past month, gold had increased by about 20%, while silver had risen over 50%, leaving the market susceptible to a sharp reversal.

The correction intensified after the US dollar gained strength following President Donald Trump's announcement of Kevin Warsh as the next Federal Reserve chair. This decision led to a 0.4% rise in the dollar index, which had previously hit a four-year low, making dollar-priced commodities less appealing to international buyers.

The decline wasn't limited to gold and silver. Spot platinum fell by approximately 15.5% to about $2,221 per ounce, while palladium dropped more than 12% to around $1,764, highlighting the widespread impact on the metals market.