Gold and silver prices fell sharply this morning, retreating from recent record highs as a stronger U.S. dollar triggered heavy selling across bullion markets, sending shock waves through precious-metal trading worldwide.
Gold briefly traded near US$5,600 an ounce (about $7,670 CDN) before plunging in a rapid selloff, dropping as much as eight per cent in minutes to a low of roughly US$5,023 (about $6,880). Prices stabilized briefly above US$5,300 ($7,260) before sliding again. As trading continued, gold was changing hands near US$5,047 an ounce (about $6,910), down roughly eight per cent on the day.
Silver experienced even steeper losses. After peaking earlier in the week at US$121.67 an ounce (about $167), silver tumbled more than 12 per cent to US$106.67 ($146) and continued to slide this morning to around US$99 an ounce (about $136). The sharp drop erased a significant portion of silver’s recent gains in a matter of hours.
The selloff followed news that U.S. President Donald Trump has selected former Federal Reserve governor Kevin Warsh as the next chair of the U.S. central bank. Markets interpreted the appointment as supportive of a stronger dollar, prompting investors who had flocked to gold and silver as safe-haven assets to reduce positions.
The U.S. dollar strengthened on the announcement, with the dollar index rising about 0.37 per cent to 96.48. Analysts said the shift away from what some described as a “dollar debasement” trade caught many investors off guard, contributing to the speed and scale of the bullion pullback.
Market observers described the move as highly volatile but cautioned against reading it as a fundamental shift in long-term precious-metal demand. While gold and silver remain supported by geopolitical uncertainty, inflation concerns and central-bank buying, analysts noted that recent price action had shown signs of over-exuberance.
For Canadian collectors and bullion buyers, the abrupt reversal serves as a reminder of how quickly precious-metal markets can move, particularly during periods of heightened speculation. Dealers are watching closely to see whether the pullback sparks renewed buying interest at lower levels or signals a broader period of consolidation following one of the strongest rallies in bullion history.