Gold and silver extended their sell-off on Monday, deepening losses from last Friday’s rout as a firmer dollar and profit-taking drained momentum from a rally that had propelled the metals to record highs just days earlier.
Spot gold lost around 5% to $4,617.07 per ounce, having crashed nearly 10% on Friday, when prices plunged below $5,000 an ounce.
Silver, which had surged alongside gold on safe haven demand and speculative inflows, also remained under pressure after last Friday’s 30% nosedive. Spot prices of the white metal were down more than 4% at $80.63 per ounce.
According to analysts, the pullback followed a violent reversal on Friday, when optimism around U.S. interest-rate cuts collided with a sudden reassessment of Federal Reserve leadership after President Donald Trump nominated former Fed Governor Kevin Warsh to succeed Chair Jerome Powell after his term ends in May.
“The ‘Buy America’ trade is back as a result, and the independence bid that drove gold and silver to nosebleed record heights right below $5,600 and $122 per ounce early Thursday morning is unraveling,” José Torres, senior economist at Interactive Brokers, said in a note on Monday.
