Silver, Gold plunges as precious metals volatility returns

Silver prices dropped sharply by more than 15 percent on Thursday morning, highlighting renewed turbulence in global precious metals markets. The white metal fell to around $73.57 per ounce during Asian trading, marking one of its steepest short-term declines after a period of strong gains and heightened speculation.

Gold also came under pressure, losing more than three percent as investors moved away from safe-haven assets. Bullion slipped to about $4,971.55 per ounce, extending a broader sell-off that has affected precious metals in recent sessions.

Market analysts say the sharp swings reflect a mix of profit-taking after last year’s strong rally, stronger currency movements, and changing expectations about interest rates, which often reduce the appeal of non-yielding assets like gold and silver. Higher borrowing costs and a firm dollar can push investors toward interest-bearing investments instead of metals.

Silver’s decline has been more dramatic than gold’s because it is tied not only to investment demand but also to industrial activity, including electronics and solar production. Concerns about slowing manufacturing growth and shifting market sentiment added extra pressure to the metal.

Despite the sudden drop, traders say volatility is likely to remain high in the near term as markets reassess economic outlooks, central bank policies, and global demand trends.