Precious Metals Crash: Gold and Silver Plummet From Record Highs as Oil Rallies on Geopolitics

Global commodity markets witnessed a violent divergence on Monday, with precious metals suffering a massive liquidation event while crude oil prices climbed on renewed geopolitical risks.

Metals Capitulation

Gold and silver prices, which had been riding high on a wave of safe-haven demand and industrial buying, faced a brutal reality check as investors aggressively booked profits ahead of the upcoming Federal Reserve meeting minutes.

• Gold (XAU/USD): Plunged more than 5%, breaking below the $4,500/oz psychological support to trade near $4,355.
• Silver (XAG/USD): Shed over 7%, dropping to the $71.50 level after touching intraday highs of $82.61.
• PGMs Rout: Platinum and Palladium saw even steeper declines. Platinum fell 12% to ~$2,157, while Palladium hit limit-down in Asian trading, crashing 13%.

Analysts attribute the sell-off to “exhaustion” in the rally. According to market strategists, retail investors—who had been pivoting from 60/40 equity portfolios to gold—triggered a cascade of selling as volatility spiked, revealing “equity-like risk characteristics” in the metal's recent behavior. Despite the crash, silver remains the year's top performer, boasting a staggering 150% annual gain driven by structural deficits.

Oil Climbs on Middle East Tensions

Conversely, energy markets bid higher on supply fears.

• WTI Crude: Up 2.3% to $58.00/bbl.
• Brent Crude: Up 2.0% to $61.44/bbl.

The divergence comes as traders watch unfolding diplomatic efforts. Former President Trump has signaled progress in talks between Ukraine and Russia, and is scheduled to meet Israeli Prime Minister Netanyahu. However, the immediate reaction in oil markets reflects nervousness over potential supply disruptions in the Middle East.