Gold and silver crash together! Silver plunges 20% in one day, gold drops 8% sharply, is the precious metals bull market coming to an end?

Spot silver and gold experienced a synchronized sharp pullback within the same trading day, with silver plunging by approximately 20% at one point, and gold falling around 8% intraday, drawing significant market attention.
(Background recap: Gold and silver dip for the second time, Bitcoin hits 81,000 USD, over 270,000 traders face liquidation)
(Additional context: Is Bitcoin entering a “coma” phase? Bloomberg analysts: BTC’s returns after 2022 still outperform gold and silver!)

Table of Contents

• Silver plunges nearly 20%, profit-taking triggers a selling wave
• Gold retraces simultaneously, safe-haven assets also struggle to stand out
• Multiple factors stacking up, amplifying short-term volatility of gold and silver

The precious metals market, which has been continuously strengthening recently, has experienced a rare sudden turn. Spot silver and gold both sharply retreated within the same trading day, with silver dropping about 20% at one point, and gold falling around 8% intraday, attracting high market concern.

Silver drops nearly 20%, profit-taking triggers a selling wave

During trading, spot silver briefly plummeted to approximately $92.19 per ounce, a remarkable retracement from the previous high of over $120. Analysts point out that silver has gained nearly 300% over the past year. The rally in January this year not only did not slow down but accelerated further, accumulating a large amount of speculative and leveraged positions, indicating a market structure that is clearly overheated.

Gold retraces simultaneously, safe-haven assets also struggle to stand out

The gold market also did not escape unscathed. Spot gold fell about 8% intraday, reaching a low of around $4,946 per ounce, a significant retreat from the recent high of over $5,600.

Multiple factors stacking up, amplifying short-term volatility of gold and silver

Comprehensive market analysis suggests that the synchronized plunge of gold and silver is mainly influenced by the following factors:

• Profit-taking rush: Silver’s gains were significantly higher than gold’s, with stronger leverage and speculative attributes, which amplified the decline during the retracement.
• Short-term strengthening of the US dollar: Reassessment of US policy outlook, including Trump’s nomination of the previously hawkish Federal Reserve Chair candidate Kevin Warsh, pushed the dollar higher, exerting pressure on precious metals.
• Decline in risk appetite: Recent coordinated adjustments in commodity markets and tech stocks have cooled overall risk sentiment.