Emre Yumlu 
As markets head into the final trading day of the week, precious metals have come under intense selling pressure. Late Thursday morning, prices accelerated to the downside, with silver recording a double-digit percentage drop. The abrupt move appears to be driven by a combination of macroeconomic dynamics and shifting geopolitical expectations.
Silver Plunges More Than 10%
Silver fell more than 10% intraday, sliding to $76.68. A decline of this magnitude within a single session underscores the heightened volatility currently gripping commodity markets. Silver’s dual role as both a precious metal and an industrial input makes it particularly sensitive to broader equity trends—especially in the technology sector.
Recent weakness in technology stocks has contributed to a broader risk-off tone. As investors reduce exposure to growth-oriented assets, silver has faced additional downside pressure. The speed of the sell-off suggests that leveraged positioning may also have amplified the move.
Gold Follows Falling
Gold mirrored the negative momentum, retreating to $4,958 per ounce. While earlier in the session the decline was relatively contained, selling intensified as the day progressed. The metal’s pullback reflects a recalibration of expectations around U.S. monetary policy and global risk sentiment.
Fed Policy Expectations Weigh on Metals
A key catalyst behind the decline is the strengthening view that the Federal Reserve is unlikely to cut interest rates in the near term. Stronger-than-expected labor market data has reduced the probability of imminent policy easing. In a higher-for-longer rate environment, non-yielding assets such as gold and silver typically lose relative appeal.
Market participants increasingly believe that resilient economic data will keep the Fed cautious. If the U.S. dollar remains firm under these conditions, additional pressure on precious metals cannot be ruled out.
Easing Geopolitical Tensions are Increasing Pressure on Gold and Silver
Another contributing factor may be a modest easing of geopolitical tensions. U.S. President Donald Trump stated that an agreement with Iran is necessary and suggested that a deal could be reached within the next month. He also indicated openness to continued dialogue, while warning that failure to reach an agreement would be “very traumatic” for Iran.
In addition, Trump reportedly paused certain technology restrictions on China ahead of a planned summit with Chinese President Xi. Israeli Prime Minister Netanyahu also expressed confidence that Trump could secure a favorable agreement with Iran. These developments have slightly reduced geopolitical risk premiums, diminishing safe-haven demand for gold and silver.
Overall, a stronger dollar, delayed rate-cut expectations, and a partial cooling in geopolitical tensions have converged to trigger the sharp correction in precious metals. Future direction will likely hinge on incoming macroeconomic data and diplomatic developments.
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