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Bloomberg via Getty Images
Gold and silver prices have continued to fall after a dramatic reversal of a rally that had pushed precious metals to record highs.
In Asia trade on Monday, spot gold prices fell more than 7% to $4,506 (£3,297) an ounce, while silver slumped by 10% to around $76 an ounce.
Prices hit fresh record highs in January after central banks added more bullion to their reserves and investors put money into safe haven assets due to financial and geopolitical uncertainties.
Markets were also worried about the independence of the US Federal Reserve but precious metals plummeted on Friday after President Donald Trump named finance industry figure Kevin Warsh as his choice to be its next boss.
With financial markets spooked by concerns including Trump's tariffs and fears that artificial intelligence-related stocks were overpriced, gold and silver repeatedly hit new record highs.
Wall Street analysts expect the Fed to cut interest rate at least twice in 2026. Gold tends to be seen as a more attractive investment when interest rates are low.
One of the biggest appeals of gold is its relative scarcity. Only around 216,265 tonnes of the metal have ever been mined, according to the World Gold Council trade association.
While economic worries can help push up the value of gold, prices can just as easily fall when those concerns ease or investors feel the gains have been overdone.
On Friday spot gold saw its sharpest one-day drop since 1983 with a fall of more than 9%, while silver plunged 27%.
