Gold and silver also joined the broader decline on Thursday, with the metals down about 5% and 10%, respectively, as concerns about the Iran war and inflation dominated global markets.
8:43 a.m. Eastern Time, spot gold It fell 4.9% to just over $4,600 an ounce. previous month gold futures fell 5.8% to $4,612.
gold price
silver price
Mining stocks and exchange-traded funds tied to gold and silver also fell in premarket trading. The ProShares Ultra Silver ETF fell 20% ahead of Thursday’s opening bell. iShares Silver Trust ETF Earlier this year, the so-called meme trade centerpiece fell almost 10%. of aberdeen Silver Spot ETF It fell 9.9%.
ProShares Ultra Silver ETF
The biggest losses among individual mining stocks were: tech resourcesFirst Majestic Silver and cool mining They fell 10% and 9.9%, respectively.
Miners’ selling was also visible in European trading, with the region’s STOXX European Basic Resources Index trading 6% lower. shares of FresnilloThe world’s leading silver producer and major gold producer fell 9.3%, while the mining giant antofagasta It was 8.2% lower.
The moves in gold and silver came amid widespread risk-off sentiment, with global stocks and government bonds falling in tandem. European stock markets fell sharply in early trading, but futures prices also showed that U.S. stocks were moving lower.
Investors are closely monitoring the ongoing war between the United States and Iran as the conflict moves into its third week. The war has heightened fears that energy shocks will add inflationary pressure to economies around the world. Oil and gas prices soared on Tuesday after strikes hit energy facilities in Iran and Qatar.
Central banks are also paying close attention to developments in the Middle East. The Federal Reserve kept interest rates on hold Wednesday, citing the “uncertain” impact of the conflict. The Bank of Japan also left interest rates unchanged, noting that inflation risks were tilted to the upside due to the impact of the Iran war.
A range of European central banks, including Britain and the euro zone, are expected to update their monetary policies later on Thursday.
The Swiss Central Bank also announced its decision to keep its key policy interest rate at 0%, warning of the outbreak of war with Iran. The Swiss National Bank said it was becoming more willing to intervene in the foreign exchange market as the war dragged on.
Gold and silver both hit record highs in 2025, rising 66% and 135% respectively over the year. However, 2026 will see even more volatile trading, with silver futures taking their biggest single-day hit in late January since the 1980s.
Paul Sagay, managing director and head of investment management and propositions at Kingswood Group, told CNBC in an email on Tuesday that gold “has been benefiting from fair winds for some time,” but the broader context may be prompting investors to reconsider their gold holdings.
“Global markets are broadly down as investors look for the quickest assets to sell. Perhaps we are beginning to see the next phase of this phase, where supposedly safe-haven assets are sold to fund the purchase of assets that may have overreacted to the current situation,” he said.
“With airspace and shipping lanes also closed, transporting gold will also become more expensive or impossible. It’s worth remembering that when you buy the ultimate safe-haven asset, you’re holding onto something physical. To truly provide that security, you need to own it.”
Ian Burns, chief information officer at British wealth management firm NetWealth, told CNBC that the increased volatility in gold prices reflects the precious metal’s widespread inclusion as a popular financial asset across investment portfolios.
“We see financial investors, not fundamental investors, as the marginal buyers of gold, and they are mitigating risk across the board,” he said in an email. “This is especially true for fast-moving leveraged funds, which face higher borrowing costs.”
Dan Coatsworth, head of markets at AJ Bell, said in a note Tuesday morning that the drop in gold prices suggests investors are exiting assets that have traditionally brought them profits, or are reacting to further gains in gold prices. USD.
“When the US dollar appreciates, gold often depreciates because it makes gold more expensive for buyers of other currencies,” he said.
