Gold falls to $5,300, silver slips from record as precious metals rally enters ‘dangerous phase’
While gold (GC=F) fell to around $5,300 after briefly hitting $5,600 per ounce on Thursday, silver (SI=F) regained its gains as precious metals took a breather after the intense rise.
The declines came with a sell-off in the stock market; Nasdaq Composite (^IXIC) fell as much as 2% due to a decline in Microsoft shares (MSFT). The tech giant’s quarterly earnings report spooked investors, given higher-than-expected capital spending and a slowdown in quarterly cloud sales growth.
The rapid rise in precious metals that stunned Wall Street met resistance on Thursday, with the US dollar (DX-Y.NYB) rebounding from its lowest level since early 2022.
“The ongoing rally in metals, especially gold and silver, is entering a dangerous phase in my view,” Ole Hansen, head of commodity strategy at Saxo Bank, said on Thursday.
“The problem is that volatility feeds on itself. As price fluctuations intensify, liquidity weakens,” he added.
Gold prices are up nearly 20% so far as the dollar weakens against other currencies.
Read more: How to invest in gold in 4 steps?
Just last week, Goldman Sachs analysts set their year-end price target for gold at $5,400, with potential upside risk due to increased participation from private sector investors.
The precious metal rose above $5,500 on Wednesday after the Federal Reserve kept interest rates steady, and a statement from Fed Chairman Jerome Powell did little to stem the dollar’s slide.
“I see this as a sign that belief levels are high in the Dollar down trade,” Brookings Institution senior fellow Robin Brooks wrote in a note on Thursday before gold’s slide. He noted that “the weaker Dollar is exaggerating the depreciation trade.”
Silver rose above $120 an ounce before paring gains. The precious metal is up 42% to date, following a dizzying rise in 2025.
“Silver prices have already significantly exceeded our forecast averages, but reaching a top is nearly impossible in markets exhibiting near-parabolic price momentum,” JPMorgan analysts wrote earlier this month. he said.
Ines Ferre is Yahoo Finance’s senior business reporter. Follow him on X @ines_ferre.
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