Historic sell?off wipes out over $1 trillion in gold and silver market value

Gold and silver markets experienced a sharp downturn recently, with an estimated $1.28 trillion in combined value erased in just a few hours as prices plunged amid heightened volatility and rapid liquidations, AzerNEWS reports.

According to market data, gold prices fell about 2.8 %, translating to roughly $1 trillion lost in market capitalization, while silver tumbled around 5.2 %, erasing approximately $280 billion in value. The sudden losses occurred during a period of thin trading and strong moves in the U.S. dollar, which makes dollar?priced bullion less attractive to international buyers.

Analysts point to a mix of profit taking after record rallies in precious metals earlier this year, expectations of firmer U.S. monetary policy, and technical selling once key price levels broke as key drivers of the downturn. In recent weeks, gold and silver have been exceptionally volatile, with prices swinging dramatically from multi?year highs.

Market participants noted that a stronger U.S. dollar, coupled with reduced safe?haven demand, has put additional pressure on bullion prices, especially during periods of low liquidity such as holiday?affected sessions.

Economists also say the sharp moves in the precious metals sector risk reverberating into broader financial markets as traders reassess risk positions across commodities, equities and fixed income. While some see the selloff as a healthy correction after an extended rally, others caution that extreme intra?day swings reflect deeper structural imbalances and rapid unwinding of leveraged positions in metals futures and ETFs.