KEY TAKEAWAYS
- Gold dropped nearly 2% and silver plunged about 9% after a massive sell-off.
- Roughly $5 trillion in global metal market value was wiped out in days.
- Analysts still see upside ahead, but short-term volatility is unavoidable.
After months of nonstop gains, precious metals pulled back sharply as markets reacted to budget headlines and global rate fears.
The sell-off caught many investors off guard. Within days, gold slipped about 2%, while silver sank nearly 9%, triggering panic selling across futures markets.
| Metal | Recent Peak | Post-Selloff Level | % Drop | Market Impact |
|---|---|---|---|---|
| Gold | ~$2,900/oz | ~$2,840/oz | ~2% | ~$3.5 trillion erased |
| Silver | ~$32/oz | ~$29/oz | ~9% | ~$1.5 trillion erased |
| Combined | — | — | — | ~$5 trillion wiped out |
Why Did Gold and Silver Suddenly Fall?
Here’s the thing.
Nothing broke overnight. This was about profit-taking.
After a monster rally stretching back months, traders rushed to lock in gains.
Once selling started, it snowballed fast.
Another pressure point?
A stronger US dollar, which usually pushes down dollar-priced assets like gold and silver.
Fed Signals Spooked the Market
Investors also reacted to fresh noise around US interest rates.
Speculation grew that the Federal Reserve may keep rates higher for longer.
That’s bad news for metals, which don’t earn interest.
Bond yields jumped.
The dollar firmed up.
Bullion took the hit.
How Big Was the Damage?
The numbers are eye-popping.
According to market estimates, gold lost nearly $3.5 trillion in market value.
Silver shed around $1.5 trillion.
That’s a combined $5 trillion erased in just days.
And yet—zoom out.
Gold is still up sharply year-to-date.
Silver, too.
This wasn’t a collapse. It was a reset.
Are Gold and Silver Still a Buy?
Many analysts say yes—but with patience.
The rally had gotten overheated.
A cooldown was overdue.
Some experts expect prices to stabilize over the next 2–3 weeks, followed by consolidation later in the quarter.
Longer term, forecasts remain aggressive:
- Gold targets as high as $6,500 per ounce
- Silver projections reaching $140+ per ounce
Volatility, though, is part of the deal.
What This Means for US Investors
If you’re already holding metals, this move hurts—but it’s not a deal-breaker.
If you’re on the sidelines, this pullback could be your window.
Just don’t expect a straight line up from here.
The bottom line?
Gold and silver didn’t lose their shine. They just cooled off.
Frequently Asked Questions
Why do higher interest rates hurt gold and silver prices?
Because metals don’t pay interest. When rates rise, investors often move money into yield-paying assets.
Is silver riskier than gold for US investors?
Yes. Silver is more volatile because it’s tied to both investment demand and industrial use.
Should beginners buy gold after a dip like this?
Possibly—but dollar-cost averaging is safer than jumping in all at once.