Gold And Silver Suffer A Once-In-Years Flash-Crash After Record Highs
Key Points
- Gold fell about 10.5% in one session after trading above $5,450, a move that looked like forced selling.
- Silver plunged over 34% after topping $118, showing how leverage can turn a rally into a stampede.
- A Fed leadership shock and tighter controls in Asia helped flip a crowded trade, with risks for miners and funds.
The precious-metals boom broke with a violence that surprised even seasoned traders. Gold and silver had been climbing in near-vertical fashion, then suddenly fell through key levels in hours. It looked less like a debate over value and more like an evacuation.
On the TradingView feed, spot gold (XAUUSD) opened near $5,385.94 and printed a high of $5,450.45. It then dropped to $4,800.44 before closing around $4,805.04.
That is roughly a $650 intraday range and a decline of about 10.5% on the day. Silver’s tape was harsher.
It opened near $115.9050, climbed to a high of $118.4655, then fell sharply to $84.4015 and is trading around $77.0010 at the time of writing.
This represents a decline of more than 34% from the peak and an intraday range of roughly $44. It remains unclear whether the sell-off has fully run its course.
Platinum and palladium were also hit, with double-digit drops reported in some sessions. The catalyst was political, but the mechanism was financial.
Reports tied the turn to President Donald Trump’s move to nominate former Federal Reserve governor Kevin Warsh as the next Fed chair.
The headline shifted expectations toward a firmer policy path and lifted the dollar. That invited profit-taking. Once prices started falling, stop-losses triggered, margin calls followed, and forced selling fed on itself.
Officials and exchanges also leaned against the frenzy. Coverage noted steps in China to cool speculative heat, including suspensions of some trading accounts on a major futures venue.
Silver’s deeper plunge reflected its smaller market, higher leverage profile, and its mix of investment and industrial demand.
For investors, the lesson is simple. Price is always a vote, not a guarantee. When policy credibility tightens and leverage is high, even iconic hedges can trade like risk assets.
Related coverage: Brazil’s Morning Call | Runoff Or Knockout: Costa Rica’s Sunday Vote Hinges On One N This is part of The Rio Times’ daily coverage of Latin American news and financial markets.
Live Market IntelligenceCommodities — Live Market Board
Rio Times · Live Market Intelligence
Commodities — Live Market Board
-0.03%
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| GOLD | 4,461 | +1.78% | +33.20% | 4,383 | 4,503 | 4,421 | 139,824 |
| SILVER | 65.59 | +1.26% | +73.05% | 64.77 | 66.98 | 64.81 | 46,406 |
| BRENT | 88.88 | -0.03% | +34.42% | 88.91 | 90.07 | 88.12 | 29,713 |
| WTI | 83.11 | -0.11% | +31.57% | 83.20 | 84.35 | 82.40 | 166,848 |
| COPPER | 6.61 | +0.03% | +46.70% | 6.61 | 6.71 | 6.61 | 39,543 |
| LITHIUM | 75.20 | +1.47% | +62.95% | 74.11 | 75.80 | 75.08 | 89,275 |
| IRON ORE | 161.91 | — | +58.10% | 161.91 | 161.91 | 1 | |
| SOY | 1,184 | +3.20% | +17.05% | 1,148 | 1,199 | 1,168 | 163,179 |
| CORN | 480.50 | +10.02% | +29.34% | 436.75 | 480.75 | 459.50 | 341,248 |
| WHEAT | 655.00 | +3.93% | +29.70% | 630.25 | 657.75 | 631.50 | 128,793 |
| COFFEE | 317.25 | -5.51% | +0.67% | 335.75 | 321.20 | 313.55 | 21,747 |
| SUGAR | 16.43 | -1.79% | -3.01% | 16.73 | 17.11 | 16.22 | 171,992 |
| COCOA | 5,719 | +3.18% | -34.96% | 5,543 | 5,779 | 5,574 | 26,773 |
| ORANGE JUICE | 138.55 | -0.47% | -45.38% | 139.20 | 141.05 | 137.50 | 703 |
| COTTON | 85.03 | +2.33% | +26.78% | 83.09 | 82.90 | 81.96 | 16,546 |
| BEEF | 223.60 | -3.93% | -5.18% | 232.75 | 226.40 | 223.00 | 16,126 |
| CATTLE | 339.10 | -3.16% | -1.82% | 350.17 | 345.50 | 338.60 | 10,164 |
| USD/BRL | 5.16 | +0.01% | -5.13% | 5.16 | 5.18 | 5.14 | — |
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