Emre Yumlu 
Global financial markets are showing a notable divergence heading into the weekend. While precious metals have come under intense selling pressure, Bitcoin has displayed relative stability, drawing renewed attention to shifting investor sentiment. Expectations surrounding monetary policy are increasingly influencing how capital is allocated across traditional safe havens and digital assets.
Precious Metals Face Extreme Volatility
Trading on Friday saw a dramatic downturn in the precious metals market. Gold prices dropped by nearly 9%, falling to approximately $4,877 per ounce, while silver suffered a far steeper decline. During the New York session, silver prices plunged by as much as 28%, sliding to the $82 level.
This sharp repricing triggered a surge in volatility indicators. The CBOE Gold ETF Volatility Index (GVZ) climbed above 46, marking its highest level since the early stages of the global pandemic in March 2020. Meanwhile, the Silver ETF Volatility Index spiked to 123, the highest reading since the index was first introduced in 2011. These levels highlight the intensity of uncertainty currently surrounding non-yielding assets.
Rate Expectations and a Stronger Dollar
The sell-off in gold and silver appears to be driven by a rapid reassessment of interest rate and liquidity expectations. As markets begin to price in the possibility of tighter monetary conditions and prolonged restrictive policy, assets that do not generate yield tend to lose their appeal.
Additional pressure emerged following the announcement that former Federal Reserve governor Kevin Warsh has been nominated to succeed Jerome Powell as Fed Chair once Powell’s term concludes in May. Warsh has long criticized extended periods of loose monetary policy and post-pandemic balance sheet expansion, arguing that such measures contributed to inflationary pressures and asset bubbles.
This development helped fuel a rally in the U.S. dollar, with the Dollar Index rising to 96.94, its highest level of the week, further weighing on precious metals.
Bitcoin Shows Relative Resilience
In contrast, Bitcoin has remained comparatively steady. After briefly dropping from $88,000 to near $81,000 earlier in the week, BTC has traded within a narrower range between $82,000 and $84,000. On Friday, the asset edged up roughly 0.2% to trade around $83,873, though it remains down more than 6% on a weekly basis.
Market sentiment within the crypto space remains cautious. The Crypto Fear & Greed Index fell 10 points over the past 24 hours to 16, placing sentiment firmly in “Extreme Fear” territory. Despite this, certain prediction markets show growing optimism, with rising odds that Bitcoin could revisit the $100,000 level rather than decline significantly further.
You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.