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Gold and silver extended their losses on Friday as a global selloff in technology stocks and a strengthening US dollar erased most of the gains the precious metals had achieved during a brief recovery earlier in the week. The decline in gold and silver prices reflects broader market volatility and shifting investor sentiment amid ongoing concerns about the technology sector.
Spot gold fell 0.7 percent to $4,735.99 per ounce by 0037 GMT, according to market data, following a four percent drop on Thursday. US gold futures for April delivery declined 2.8 percent to $4,752.40 per ounce, extending the precious metal’s recent downturn.
Silver Prices Experience Sharp Decline
Silver experienced even steeper losses in spot trading, dropping 3.2 percent to $68.97 per ounce after plummeting 19.1 percent in the previous session. Earlier in the day, the white metal fell ten percent below the $65 level, marking its lowest point in recent trading. The sharp decline in silver prices underscores the heightened volatility affecting precious metals markets.
Technology Sector Selloff Impacts Precious Metals
The ongoing selloff in global technology company stocks has created ripple effects across financial markets, putting pressure on traditional safe-haven assets like gold and silver. Additionally, the rising value of the US dollar has made dollar-denominated commodities more expensive for holders of other currencies, further dampening demand for precious metals.
Market analysts note that the brief recovery witnessed earlier in the week proved short-lived as macroeconomic headwinds reasserted themselves. The combination of equity market turbulence and currency strength has created a challenging environment for gold and silver investors seeking stability.
Platinum and Palladium Show Mixed Performance
Meanwhile, platinum prices declined 3.6 percent in spot trading to $1,916.45 per ounce, retreating significantly from its all-time high of $2,918.80 reached on January 26. In contrast, palladium bucked the broader trend among precious metals, rising 1.3 percent to $1,638.25 per ounce, demonstrating divergent dynamics within the platinum group metals.
The contrasting performance between platinum and palladium highlights the different supply and demand fundamentals affecting each metal. However, platinum’s substantial retreat from its recent record high suggests profit-taking and renewed risk aversion among traders.
Gold Faces Pressure from Multiple Factors
The persistent weakness in gold prices reflects multiple headwinds facing the precious metal. The stronger dollar makes gold less attractive to international buyers, while the technology sector’s troubles have prompted investors to reassess their portfolio allocations across all asset classes.
Furthermore, the rapid pace of decline in silver, which saw a nearly 20 percent drop in a single session, indicates panic selling and possible margin calls affecting leveraged positions. The volatility has raised questions about the near-term direction of precious metals markets and whether traditional safe-haven assets will regain their appeal.
Market participants will continue monitoring developments in equity markets and currency movements to gauge the next direction for precious metals prices. Uncertainty remains elevated as traders await clearer signals about whether the current selloff represents a temporary correction or the beginning of a more sustained downturn in gold and silver valuations.
