Global markets were shaken after a sharp reversal in precious metals wiped out recent gains, with silver plunging nearly 35 percent in a single session and gold falling around 12 percent from record levels. Silver dropped rapidly after touching highs near $120 per ounce, while gold retreated below $4,800 after briefly trading well above $5,000. The selloff extended beyond the two metals, with platinum and palladium also posting steep losses, highlighting the intensity of the pullback. The move came after months of strong inflows into commodities, which had benefited from inflation hedging and geopolitical uncertainty. Market participants said the speed and scale of the decline suggested crowded positioning rather than a gradual shift in fundamentals, raising questions about whether capital is now rotating away from traditional safe havens.
In contrast to the turbulence in metals, Bitcoin showed relative stability, trading near $83,000 and remaining above the week’s lows after earlier volatility. While cryptocurrencies had faced selling pressure earlier in the week, price action turned sideways during the metals collapse, signaling a pause in downside momentum. Some traders noted that crypto markets appeared calmer than commodities, an unusual dynamic given bitcoin’s reputation for volatility. The divergence has revived debate among investors who believe digital assets have lagged while capital poured into precious metals. With metals now retreating sharply, attention is turning to whether risk appetite could shift back toward crypto markets, particularly as on-chain activity and derivatives positioning point to growing interest in upside exposure.
The broader market context also weighed on sentiment, with U.S. equities moving lower alongside commodities. Investors have been reassessing risk following renewed focus on monetary policy after President Trump nominated Kevin Warsh to replace Jerome Powell as chair of the Federal Reserve. Warsh is widely viewed as more hawkish, a perception that added pressure across risk assets. Paul Howard, director at Wincent, said recent months saw risk capital flow heavily into commodities, leaving crypto markets sidelined. He noted growing interest in bitcoin options as traders position for a potential rebound, suggesting that if the metals rally has peaked, digital assets could benefit from shifting market leadership.
