Emre Yumlu 
Precious metals are extending their losses as global market conditions continue to deteriorate. After a brief rebound earlier in the week, both gold and silver have come under renewed selling pressure, driven primarily by a stronger US dollar and weakness across global equity markets. Rising volatility and shifting risk preferences are weighing heavily on investor sentiment toward safe-haven assets.
Sharp Pullback in Precious Metals
Gold prices recorded a significant decline after losing nearly 4% on Thursday. As of the latest trading session, spot gold is hovering around $4,839.4 per ounce, giving back a substantial portion of its recent gains.
Silver has experienced an even more dramatic move. Following a 19.1% drop in the previous session, spot silver has fallen to approximately $72.88 per ounce, highlighting the metal’s higher sensitivity to risk-off conditions and speculative positioning.
Global Equities and Dollar Strength Add Pressure
The downturn in precious metals coincides with a broader sell-off in global equities. The MSCI World Equity Index declined by more than 1% on Thursday, as investors reacted to concerns over rising costs in artificial intelligence investments and disappointing labor market data from the United States.
As equity markets weakened, capital flowed into US Treasury bonds, reinforcing demand for the dollar. The US Dollar Index climbed to its highest level in two weeks, adding further pressure to commodities priced in dollars. A stronger dollar typically reduces the appeal of gold and silver by making them more expensive for holders of other currencies.
Labor Market Data and Interest Rate Expectations
Recent labor market data has added another layer of complexity. According to the JOLTS report published by the US Bureau of Labor Statistics, job openings fell by 386,000 in December, reaching 6.542 million, the lowest level since September 2020.
This slowdown in hiring activity has strengthened expectations that the Federal Reserve may begin easing monetary policy in the future. Markets are currently pricing in at least two 25-basis-point rate cuts in 2026, with the first potentially arriving as early as June. While lower interest rates are generally supportive for non-yielding assets like gold, the current dominance of the dollar has muted this effect.
Other Metals and Geopolitical Developments
Elsewhere in the metals market, platinum fell 3.6% to $1,916.45, retreating sharply from its January 26 record high of $2,918.80. In contrast, palladium edged higher by 1.3% to $1,638.25.
On the geopolitical front, US officials reiterated that diplomacy remains the preferred approach in discussions with Iran, while confirming that military options remain available if negotiations fail.
Overall, the current landscape suggests that volatility in precious metals is likely to remain elevated in the near term, as macroeconomic uncertainty and currency dynamics continue to dominate price action.
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