Gold and silver prices plunged further in early Asian trading on Monday, extending a brutal selloff that followed last week’s sudden reversal from record highs. Spot gold fell more than 9% to around $4,403 an ounce, while silver slid 15% to below $72, after both metals suffered their steepest one-day losses in decades on Friday.
The rout was triggered after Donald Trump nominated Kevin Warsh as the next chair of the U.S. Federal Reserve, a move broadly welcomed by markets. The dollar jumped about 1%, reducing the appeal of dollar-priced commodities. Analysts at Deutsche Bank said the nomination was the “clear catalyst” behind the selloff, with gold posting its sharpest daily drop since 1983 and silver collapsing 27%.
The weakness spilled across global markets. Asian equities sank, led by South Korea, while European stocks opened lower, with mining shares hit hard. In London, precious-metal producers Fresnillo and Endeavour Mining both slid about 7%. Oil prices also fell more than 5%, pressured by a stronger dollar, steady output from major producers, and easing geopolitical tensions.
The plunge follows an extraordinary run for precious metals. Gold surged to above $5,500 in January after a blockbuster 2025, its best year since 1979, as investors sought safety amid tariffs, geopolitical risks, and heavy central-bank buying—only about 216,265 tonnes of gold have ever been mined, according to the World Gold Council. But as concerns eased and profits were taken, the rally unraveled. “Once profit taking started, it just snowballed,” said Bank Julius Baer’s Mark Matthews, noting prices had already gone parabolic before the collapse.
