Gold silver prices fall sharply as a stronger US dollar and a wider market selloff pressure precious metals prices. The decline came on Thursday during early trading, as investors shifted away from risk assets and reassessed recent volatility across global markets.
Spot gold slipped nearly 1% to around $4,918 per ounce by mid-morning GMT. Earlier in the session, prices dropped close to 4% before recovering some ground. US gold futures for April delivery also eased, trading modestly lower near $4,936 per ounce. The pullback followed a brief rise earlier in the week, when prices touched a near one-week high.
The dollar climbed to a near two-week peak, which reduced demand for dollar-priced commodities. As a result, gold became more expensive for holders of other currencies. Analysts noted that renewed confidence in the US currency changed market sentiment and encouraged traders to reduce exposure to precious metals.
Market participants also reacted to political developments. Iran and the United States confirmed plans to hold talks in Oman, while US President Donald Trump described recent discussions with Chinese President Xi Jinping as positive. These signals suggested easing geopolitical tensions, which reduced demand for traditional safe-haven assets like gold.
At the same time, broader commodity markets came under pressure. Prices of oil and base metals declined, reinforcing the negative momentum. According to market strategists, losses across asset classes fed into each other, especially during periods of thin liquidity.
Silver recorded steeper losses. Spot silver plunged more than 9% to about $79.88 per ounce after falling as much as 15% earlier in the day. The metal had reached a record high above $121 per ounce last week. Analysts said industrial demand weakened at elevated price levels, particularly as Chinese solar panel manufacturers explored alternative materials.
Asian equity markets also struggled. Concerns over rising costs linked to artificial intelligence investments prompted investors to rotate out of technology stocks. Meanwhile, falling silver prices intensified pressure on leveraged positions, adding to market stress.
Other precious metals followed the same trend. Platinum dropped nearly 9% to around $2,126 per ounce after hitting a record high in late January. Palladium also declined, losing close to 3% in the latest session.
Overall, gold silver prices fall reflected a shift in investor sentiment. A firmer dollar, easing global tensions, and synchronized losses across markets combined to drive a broad retreat from precious metals.