Gold and silver extended sharp declines on Monday, following a dramatic market reversal that erased gains made in January. Gold plunged as much as 6.3%, briefly trading below $4,600 an ounce, after rallying to nearly $5,600 last month. Silver slumped up to 12%, compounding a record 26% drop on Friday.
Global equities also suffered, with Asian stocks recording their worst two-day decline since April, while futures indicated further losses for European and Wall Street markets. Technology shares came under pressure, with the MSCI Asian tech gauge posting its steepest fall since November, driven by concerns over stretched valuations and heavy investment in AI.
Bitcoin also fell briefly below $75,000, reflecting worsening risk sentiment. Meanwhile, the Bloomberg Dollar Spot Index maintained gains made on Friday following President Donald Trump’s nomination of Kevin Warsh as the next Federal Reserve chair.
“Traders are unnerved by the market tumult witnessed on Friday in precious metals,” said Tim Waterer, chief market analyst at KCM Trade. “Forced closures in precious metals amid margin increases are leading to liquidation across other assets.”
