Gold Retreats, Silver Sinks on Firm Dollar and Market-Wide Risk Off

Gold and silver prices plunged on Thursday, pressured by a firmer U.S. dollar and a broad selloff across global markets, as easing geopolitical tensions dented demand for safe-haven assets.

Spot gold fell 0.9% to $4,917.61 per ounce by 0754 GMT, retreating from a near one-week high reached earlier in the session after sliding nearly 4% at one point. U.S. gold futures for April delivery eased 0.3% to $4,936.30.

The U.S. dollar climbed to a near two-week high, making dollar-priced gold more expensive for holders of other currencies. Analysts pointed to renewed confidence in the greenback following the nomination of Kevin Warsh as Federal Reserve chair.

“The dollar has received a fresh boost, and traders are now more cautious on gold given the recent extreme volatility,” said Tim Waterer, chief trade analyst at KCM.

Risk sentiment also shifted as geopolitical tensions appeared to cool. Iran and the United States agreed to hold talks in Oman on Friday, while U.S. President Donald Trump said discussions with Chinese President Xi Jinping had been “very positive.”

The easing of tensions triggered a sharp drop across commodities, with prices from crude oil to copper sliding.

“Sentiment has turned soggy across most asset classes, with losses reinforcing each other amid thin market liquidity,” said Christopher Wong, strategist at OCBC.

Silver saw especially heavy losses, tumbling 9.3% to $79.88 an ounce after plunging as much as 15% earlier in the session. The metal had hit a record high of $121.64 last week.

Industrial demand weakened at elevated prices, particularly as Chinese solar panel manufacturers explored alternative materials, said Kunal Shah, head of research at Nirmal Bang Commodities.

Platinum dropped 8.7% to $2,125.80 per ounce after touching a record $2,918.80 in late January, while palladium slipped 2.8% to $1,725.53.