Panic hits precious metals as gold and silver enter freefall.
Gold and silver are in freefall today, triggering a broad wave of liquidations in mining stocks and investment products linked to precious metals globally. The spot price of silver recorded a 15% drop, falling to approximately $98.66 per ounce and slipping back below the psychological threshold of $100. Similarly, the correction in derivatives markets was intense, with front-month gold contracts in New York losing 5.5%, while February silver contracts saw losses of 11%.
The market sell-off extended across the entire precious metals sector, with platinum prices retreating by more than 14% and palladium recording a drop near 12%. The impact was clearly visible on stock exchanges. In Europe, the Stoxx 600 Basic Resources index, which includes the continent's largest mining companies, fell by 3.2% in morning trading. London-listed Fresnillo, the world's largest silver producer, saw its shares lose 7%.
On Wall Street, pre-market trading saw Endeavour Silver at -14.7%, while First Majestic Silver dropped 14.4%. Significant losses were also noted in silver-focused ETFs, with the ProShares Ultra Silver recording a 25% plunge and the iShares Silver Trust ETF losing 12.7%.
After a spectacular rally
This correction comes following an exceptionally strong 12-month bull market for precious metals, set against a backdrop of increased market volatility, a weakening dollar, geopolitical tensions, and concerns regarding the independence of the US Federal Reserve (Fed). In 2025, gold and silver recorded historic rallies, with annual gains of 65% and 150% respectively.
The upward trend had continued into 2026, with silver gaining 37% since the start of the year and gold rising by 15.4% prior to today’s abrupt correction.
‘Even good assets correct’
Katy Stoves, investment manager at the British firm Mattioli Woods, told CNBC that these movements reflect a "broader reassessment of concentration risk." She noted that, "just as tech stocks—and especially those linked to artificial intelligence—gathered disproportionate investor interest, gold found itself at the center of intense positioning. When everyone moves in the same direction, even high-quality assets can face heavy pressure as positions are unwound."
For his part, Toni Meadows, chief investment officer at BRI Wealth Management, suggested that gold’s ascent toward $5,000 "came far too easily." He noted that while a weakening dollar had supported prices, the US currency is showing signs of stabilizing, and central bank gold purchases have tapered off in recent months.
Meanwhile, Claudio Wewel, currency strategist at J. Safra Sarasin Sustainable Asset Management, noted that a "perfect storm" of geopolitical developments had pushed precious metals higher during the year, citing tensions in US international relations. He added that in recent days, markets have been influenced by expectations surrounding the next Fed chair.
Investors are awaiting the announcement of Jerome Powell's successor, with former Fed Governor Kevin Warsh considered the favorite in prediction markets. "The market had priced in the possibility of a particularly dovish candidate, which supported gold. Over the last 24 hours, however, the news flow has shifted," Wewel concluded.
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