Gold tumbles to $5,300, silver sinks from record as precious metals rally enters 'dangerous phase'

Gold (GC=F) fell beneath $5,300 aft concisely topping $5,600 per ounce connected Thursday portion metallic besides slid arsenic a blistering rally successful precious metals appeared to travel to a halt.

The declines came alongside a selloff successful the banal market, with the Nasdaq Composite (^IXIC) dropping much than 2% amid a plunge successful Microsoft shares (MSFT). The tech giant's quarterly net study spooked investors fixed higher-than-anticipated superior spending and a slowdown successful quarterly unreality income growth.

A accelerated rally successful precious metals that had stunned Wall Street began to look absorption connected Thursday arsenic the US dollar (DX-Y.NYB) rebounded from its lowest level since aboriginal 2022.

“The continued surge crossed metals, particularly golden and silver, is entering a unsafe phase, successful my opinion,” Ole Hansen, caput of commodity strategy astatine Saxo Bank, said connected Thursday.

“The occupation is volatility feeding connected itself. As terms swings intensify, liquidity thins,” helium added.

Gold prices had risen astir 20% twelvemonth to day arsenic the greenback weakened against different currencies.

Just past week Goldman Sachs analysts had enactment a year-end terms people connected golden of $5,400, with an upside hazard fixed accrued information from backstage assemblage investors.

The precious metallic rallied past $5,500 connected Wednesday aft the Federal Reserve held rates dependable with commentary from Fed seat Jerome Powell doing small to halt the dollar's slide.

“I spot this arsenic a motion that condemnation levels successful the Dollar-down commercialized are high,” said Robin Brooks, elder chap astatine the Brookings Institution, successful a enactment connected Thursday anterior to gold's descent. He noted that "The anemic Dollar is super-charging the debasement trade.”

Silver crashed 3% to hover adjacent $106 connected Thursday aft topping $120 per ounce. The precious metallic is up 42% year-to-date aft posting a stunning rally successful 2025.

"Silver prices person already importantly overshot our forecasted averages, though calling a apical is adjacent to intolerable successful markets displaying near-parabolic terms momentum," JPMorgan analysts noted earlier this month.

Ines Ferre is simply a elder concern newsman for Yahoo Finance. Follow her connected X astatine @ines_ferre.

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