Precious metals plummeted as President Trump expressed willingness to work with China on a trade deal, causing gold futures to drop by 2.8% and silver and platinum futures by over 5%. Trump promised a “fantastic deal” with China, reassuring investors and easing tensions in the market.

Capital.com analyst Daniela Hathorn suggested that signs of progress in the US-China trade war helped calm investors. The market had been on a historic bull run, with gold surpassing $4,000 and silver over $50 for the first time in decades. A correction was expected due to the rapid rise in prices.

Despite the recent drop, long-term support for precious metals remains intact. The market had become overcrowded and overheated, leading to the correction. Hathorn emphasized that the fundamentals supporting precious metals have not changed, indicating potential resilience in the long term.

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