The decline of precious metals comes amid a generalized risk-off environment, where stocks and government bonds are retreating simultaneously
Gold and silver were at the center of a massive sell-off on Thursday, recording losses of approximately 3% and 5% respectively, as fears over the war with Iran and rising inflation jolted global markets. The spot price of gold dropped by 6% to $4,606.44 per ounce, while futures contracts recorded a 4% decline. Silver saw an even sharper correction, with losses exceeding 5% in the spot market and nearly 8% in futures.
Hammering of stocks and sector ETFs
The decline extended to mining companies and ETFs linked to precious metals. The ProShares Ultra Silver ETF plummeted nearly 12% in pre-market trading, while the iShares Silver Trust ETF retreated by about 6%. Significant losses were also recorded by individual companies such as Teck Resources, First Majestic Silver, and Coeur Mining. In Europe, the Stoxx Europe basic resources index fell by 4.5%, with companies like Fresnillo and Antofagasta posting heavy losses.
Paradoxical sell-off in "safe" assets
The fall of precious metals occurs within a generalized risk-off environment, where stocks and government bonds are retreating simultaneously. Analysts point out that investors are proceeding with liquidations even in assets considered "safe havens" in order to cover losses or capitalize on other opportunities.
The role of the dollar and financing costs
The strengthening of the dollar is acting as a burden on gold, CNBC notes, as it makes the metal more expensive for non-US investors. At the same time, higher interest rates increase the cost of holding non-yielding assets like gold. The stance of the Federal Reserve, which maintained interest rates and warned of inflationary risks due to energy, further intensified the pressure.
War and supply chains intensify instability
The conflict with Iran, entering its third week, is fueling fears of an energy shock and a slowdown of the global economy. Attacks on energy infrastructure in Iran and Qatar have already sent oil and natural gas prices soaring. Simultaneously, the closure of air and sea routes is increasing the cost of transporting physical gold, undermining even its role as a "safe" investment refuge.
From record rally to extreme volatility
After an impressive 2025—where gold and silver saw gains of 66% and 135% respectively—2026 is characterized by intense fluctuations. The market appears to be moving into a new phase where even the most traditional safe assets do not offer protection, reflecting the intensity and uncertainty dominating the global economic landscape.
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