Gold futures fell over 11% to trade below $4,900 per troy ounce, reversing this year’s rally. Spot gold experienced its biggest daily drop in decades, while silver futures tumbled by more than 25%. The volatility coincided with a broader stock market sell-off after President Trump nominated Kevin Warsh as the next Federal Reserve Chair.

Strategists predicted a pullback in gold and silver prices, citing historical trends and rapid price increases. Ole Hansen of Saxo Bank warned of a dangerous phase in the metals market, as volatility intensifies and liquidity thins. Goldman Sachs analysts previously set a year-end price target of $5,400 for gold, with potential upside risk from private-sector investors.

Silver, which peaked at $120 per ounce, dropped to around $83 on Friday. The metal has seen an 8% increase year to date, following a strong rally in 2025. JPMorgan analysts noted the difficulty in predicting a market top amidst near-parabolic price momentum. The weak Dollar has been fueling the debasement trade, as gold and silver prices fluctuate.

Read more at Yahoo Finance: Gold sinks to $4,900, silver crashes 25% as precious metals trade unwinds