Gold prices plummeted to their lowest level in a year on Friday, as broader market turmoil dragged down even traditional safe-haven assets. Spot gold fell 3.1% to $3,897.09 an ounce, marking its weakest point since October 2025. Silver, platinum, and palladium also tumbled, with silver dropping 6% to $49 an ounce, its first break below $50 in 11 months, and palladium slipping below $1,000. Independent metals trader Tai Wong described the sell-off as a 'sky is falling' moment, noting that precious metals couldn't escape the gravity of a tech-driven stock correction.
The sharp decline in technology stocks may have triggered forced selling of safe-haven assets like gold, along with margin calls, according to analysts at Commerzbank. Despite the downturn, they anticipate a recovery in precious metals ahead. Gold has lost 30% of its value since hitting a record high of $5,595 in January, pressured by expectations of prolonged high interest rates and weak demand in Asia. Analysts point out that central bank demand typically strengthens when gold dips below $4,000.
In contrast, the white precious metals, silver, platinum, and palladium, lack the support that gold has received from central bank purchases and safe-haven demand. This week's 7% to 9% drop in these metals pushed their Relative Strength Index into 'oversold' territory for the first time in three years, signaling strong bearish momentum. Wong highlighted that the downturn has been relentless rather than a sharp, recoverable spike. Silver, increasingly seen as an industrial growth-dependent commodity, faces falling demand in both industrial and jewelry sectors, with HSBC forecasting an average price of $64 per ounce in 2027.
The gold-to-silver ratio has widened significantly, requiring 79 ounces of silver to buy one ounce of gold, the highest level in 11 months, compared to 46 ounces in January when silver peaked at $122. Historically, this ratio averaged 82 between 2020 and 2025, suggesting further potential declines for silver relative to gold. Platinum and palladium also hit multi-month lows, with platinum down 4% at $1,434 and palladium losing 3% to $977, pressured by concerns over auto sector demand.