Gold Silver Markets Experience Largest Selloff in Over a Decade Amid Profit-Taking and Economic Uncertainty

Gold and silver prices have experienced their sharpest declines in years following a historic rally driven by safe-haven demand amid global tensions and bets on US Federal Reserve interest rate cuts. Spot silver dropped as much as 8.7% and gold fell up to 6.3%, with gold prices falling nearly 10% from recent record highs, marking the largest two-day drop since 2013. The correction is attributed to profit-taking, easing geopolitical tensions, a stronger dollar, and progress on US trade talks, which have reduced the metals' safe-haven appeal. Despite the downturn, gold remains up about 55% since the start of the year, with analysts expecting a technical correction and potential recovery next year. Tokenized gold assets also mirrored the price decline, with market capitalization dropping around 7%, reflecting broader market sentiment. Meanwhile, UK inflation data showing an unexpected cooling has kept hopes alive for a Bank of England interest rate cut, adding to the complex factors influencing precious metals markets.