Gold Loses Over $3 Trillion Market Value. Global commodity markets witnessed heavy volatility on Thursday as gold and silver prices plunged sharply within a short period. International gold prices fell to around $5,135, while silver dropped to nearly $109. Research data shows that this sudden fall erased more than $3 trillion in total market value in just 90 minutes, shocking investors across global markets.
Massive Pullback After a Strong Rally
The sharp decline came after an extraordinary rally in precious metals over the past year. Gold prices had surged nearly 90 percent during this period. This rise was mainly driven by ongoing geopolitical tensions, a weaker US dollar, and strong buying by central banks around the world. However, the sudden fall is being linked to profit-taking, where investors sell assets to lock in gains after a long upward trend.
Silver Suffers Deeper Losses
Silver prices were hit harder than gold. The metal fell by more than 10 percent in a single session. At the time of reporting, silver had lost nearly $760 billion in market capitalization. Gold also saw heavy losses, with almost $4 billion wiped off its value during the sell-off. Combined, these losses exceeded the total market capitalization of Bitcoin, highlighting the scale of the downturn.
US Equity Futures Slide
The sell-off was not limited to commodities. Risk assets across financial markets also came under pressure. S&P 500 futures declined by 1.2 percent, while Nasdaq futures dropped sharply by 2.5 percent. The fall in futures signaled a weak opening for US stock markets, reflecting growing investor anxiety.
Market Volatility Grips Investors
Despite the sharp retreat, gold remains significantly higher on a year-to-date basis. Many investors are now closely watching price movements for signs of a rebound. Market analysts say volatility remains elevated, and sudden price swings are likely as traders react quickly to economic data and policy signals.
Traders React on Social Media
Several traders and analysts on X (formerly Twitter) described the situation in gold, silver, and Bitcoin markets as extremely intense. Many pointed out that sharp corrections are common after long rallies and warned investors to remain cautious during periods of high volatility.
US Stock Markets Close Lower
US equities ended Thursday’s session in negative territory. The S&P 500 closed down around 1 percent, while the Nasdaq Composite declined by 1.6 percent. The Dow Jones Industrial Average slipped slightly, falling 21 points, or 0.1 percent, by the end of trading.
Microsoft Shares Trigger Broader Sell-Off
A major factor behind the US market decline was a sharp sell-off in Microsoft shares. The stock plunged 12 percent, marking its worst single-day decline since March 2020. Investors reacted negatively after the company reported slower cloud revenue growth for the fiscal second quarter and issued weaker-than-expected operating margin guidance for the third quarter.
Federal Reserve Decision Adds Pressure
Market sentiment was also influenced by the latest interest rate decision from the Federal Reserve. While the decision itself was closely watched, investors appeared cautious about future policy direction, adding to the overall market nervousness.
Conclusion
The sharp fall in gold and silver prices, combined with losses in US equities, highlights growing uncertainty across global financial markets. While precious metals remain strong on a longer-term basis, sudden profit-taking has triggered heavy volatility. With geopolitical risks, central bank policies, and earnings reports still in focus, investors can expect continued market swings in the days ahead.
