Gold Sinks to $4,900, Silver Crashes 25%

Gold futures fell as much as 11% on Friday, dropping below $4,900 per troy ounce in a sharp reversal of this year’s massive rally in precious metals.

Spot gold recorded its biggest single-day decline since the early 1980s, while silver futures plunged more than 25%, Ines Ferré reported for Yahoo Finance.

The volatility coincided with a broader stock market sell-off, with major U.S. indexes all closing lower after President Donald Trump selected Kevin Warsh as the next chair of the Federal Reserve.

The nomination appeared to ease concerns over the central bank’s independence, given Warsh’s historically hawkish stance.

Strategists said the steep pullback followed an extended rally that left the metals vulnerable to profit-taking.

“The higher metals rise, the more likely 2026 will mark enduring price peaks — notably for silver — if history is a guide,” Mike McGlone, senior commodity strategist at Bloomberg Intelligence, wrote.

“There are always sound fundamental reasons for rallies, but when prices rise as rapidly as they have in the metals, deficits can shift fast,” he added.