Gold and silver extended their slump with stocks, as assets that had performed the best in January came under intense selling pressure following Friday’s dramatic market reversal.
The yellow metal plunged as much as 6.3% to briefly trade below $4,600 an ounce on Monday, after a rally that took it to nearly $5,600 in January.
Silver plunged as much as 12%, following a record 26% slump on Friday. Asian stocks had their worst two-day decline since early April, and futures indicated further losses for Europe and Wall Street benchmarks.
Technology stocks fell as concerns over stretched valuations and heavy investment in AI drove MSCI’s Asian tech gauge to its steepest decline since November. As risk sentiment worsened, Bitcoin briefly slid below $75,000.
The Bloomberg Dollar Spot Index held on to the gains made on Friday, when President Donald Trump nominated 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 is leading to the liquidation of other assets.
