Market News

Gold (GC=F) futures fell as much as 11% on Friday to trade below $4,900 per troy ounce in a severe reversal of this year's massive rally in precious metals.

Spot gold saw its biggest daily drop since the early 80's while silver (SI=F) futures tumbled more than 25%.

The volatility came alongside a wider stock market sell-off, with the major averages all lower after President Trump selected Kevin Warsh as the next Federal Reserve Chair. The nomination appeared to eased concerns about the central bank’s independence, given Warsh’s historically hawkish stance.

Strategists, however, said gold and silver’s epic rally was due for a pullback.

"The higher metals rise, the more likely 2026 will mark enduring price peaks — notably for silver — if history is a guide," Mike McGlone, senior commodity strategist at Bloomberg, wrote on Friday.

"There are always sound fundamental reasons for rallies, but when prices rise as rapidly as they have in the metals, deficits can shift fast," he added.

Ole Hansen, head of commodity strategy at Saxo Bank, said on Thursday that "the continued surge across metals, especially gold and silver, is entering a dangerous phase, in my opinion."

“The problem is volatility feeding on itself. As price swings intensify, liquidity thins,” he added.