Gold and other precious metals dropped sharply as wider markets turned risk-off due to concerns about AI. Heavy trading activity, including algorithmic trading, likely added to the speed of the fall.
Bullion fell as much as 4.1%, while silver dropped 11%. Copper on the London Metal Exchange fell 2.9%.
Precious Metals Selloff Accelerates
By the New York close, spot gold was down 3.2% to USD4,920.37/oz and silver was down 11% to USD75.15/oz. Platinum and palladium also declined, and copper on the LME slipped 2.2%.
The report also pointed to profit-taking after a strong rally in precious metals. It notes the article was produced with the help of an AI tool and reviewed by an editor.
Gold is seeing a fast, steep selloff, driven by broad fear about the future of Artificial Intelligence. The CBOE Volatility Index (VIX), a key gauge of market fear, jumped more than 45% in the past 24 hours to 32.5. That is the highest level since the market stress in late 2024. This type of panic can trigger automated programs to sell across many assets, which helps explain the sudden drop.
For derivatives traders, this surge in volatility makes options very expensive. One near-term idea is to sell premium to benefit from elevated fear. However, this is high risk if the selloff continues. Watch implied volatility in gold options. If it starts to ease, it may signal the worst of the panic is passing.
Gold Silver Ratio Signals Risk Off
Silver falling 11% while gold fell about 4% is an important signal. It pushed the gold-to-silver ratio above 65. That suggests traders are selling industrial and speculative assets faster than safe havens. This is typical risk-off behavior. Because silver is tied more closely to industry, it often falls harder when traders fear slower growth.
A similar, but smaller, profit-taking move happened in summer 2025 after a long rally, followed by a consolidation period. This move looks like a larger washout of long positions built during the recent run toward $5,000. Traders should now watch whether gold can hold support near $4,800, a key level of activity last month.
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