Frank Rondel
Gold and silver prices dropped sharply on Thursday, joining a wider global market sell-off driven by escalating geopolitical tensions and inflation concerns, reports customreceipt.com via CNBC. Precious metals lost significant value as investors reacted to the ongoing U.S.-Iran conflict and rising risks of an energy-driven inflation spike.
Gold declined by approximately 5% in early trading, with spot prices falling to just above $4,600 per ounce. Futures contracts for front-month delivery were also under pressure, dropping nearly 6% to around $4,612. Silver experienced even steeper losses, with spot prices falling about 9.5% to $68.22 per ounce, while futures contracts slid roughly 12% to settle near $68.31.
The downturn extended beyond commodities markets, impacting mining equities and exchange-traded funds tied to precious metals. The ProShares Ultra Silver ETF fell by around 20% ahead of the opening bell, while the iShares Silver Trust ETF declined nearly 10%. Aberdeen’s Physical Silver Shares ETF also recorded losses close to 10%. Among individual mining companies, Teck Resources dropped 8.9%, while First Majestic Silver and Coeur Mining fell by 10% and 9.9%, respectively.
European markets reflected similar pressure during the trading session. The Stoxx Europe Basic Resources index fell approximately 6%, with shares of Fresnillo, one of the world’s крупнейших silver producers, declining 9.3%. Antofagasta also posted losses of more than 8%.
The sell-off comes amid a broader “risk-off” sentiment across global financial markets, where both equities and government bonds are declining simultaneously. European stock indices opened significantly lower, while futures markets indicated further weakness in U.S. equities at the start of trading.
Investors continue to monitor developments in the U.S.-Iran war, which is entering its third week. The conflict has intensified concerns about disruptions to energy supplies, particularly after strikes targeted facilities in Iran and Qatar earlier in the week. Oil and gas prices surged in response, raising expectations of additional inflationary pressure worldwide.
Central banks are responding cautiously to the evolving situation. The U.S. Federal Reserve maintained its benchmark interest rate, citing uncertainty linked to geopolitical developments. The Bank of Japan also held rates steady, noting that inflation risks are increasingly skewed upward due to the conflict. In Europe, several central banks, including those in the United Kingdom and the eurozone, are expected to announce policy updates.
The Swiss National Bank kept its key rate unchanged at 0% and highlighted the Iran conflict as a significant external risk. It also indicated a growing readiness to intervene in foreign exchange markets as instability persists.
The current volatility follows a period of strong performance for precious metals. In 2025, gold surged by 66%, while silver recorded gains of 135%. However, trading conditions in 2026 have become significantly more unstable, with silver futures experiencing their largest single-day decline since the 1980s in late January.
Market analysts point to a shift in investor behavior as a key factor behind the sell-off. According to Paul Surguy of Kingswood Group, gold had benefited from sustained positive momentum, but broader market conditions are prompting investors to rebalance portfolios. He noted that in periods of widespread selling, even traditionally safe-haven assets may be liquidated to cover losses or fund other positions.
Additional logistical challenges are also influencing sentiment. Disruptions to airspace and shipping routes are increasing the cost and complexity of transporting physical gold, potentially reducing its appeal as a defensive asset.
Iain Barnes of Netwealth emphasized that increased volatility reflects gold’s growing role as a mainstream financial instrument. He noted that institutional investors, particularly leveraged funds, are reducing exposure amid rising borrowing costs and heightened uncertainty.
Dan Coatsworth of AJ Bell highlighted currency dynamics as another contributing factor. He noted that gold prices typically decline when the U.S. dollar strengthens, as the metal becomes more expensive for buyers using other currencies. This relationship appears to be reinforcing the downward pressure observed in recent sessions.
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