Gold and silver lose value amid growing inflation risks

Gold and silver lose value amid growing inflation risks
Gold and silver prices fell due to inflation fears and geopolitical instability

​​Gold and silver prices saw significant drops on Thursday, joining a global asset sell-off driven by increasing inflation concerns. Gold lost 2%, while silver dropped by 5.5%. This decline came amid growing worries about a potential war with Iran and market uncertainties worldwide.

Highlights

  • Gold and silver prices fell by 2% and 5.5%, respectively.
  • The decline was driven by inflation concerns and geopolitical risks.
  • Gold and silver futures also saw significant losses.

Geopolitical and inflationary impact

Gold prices fell by 2%, reaching $4,718.60 per ounce. Meanwhile, gold futures for next month dropped by 3.8%, settling at $4,709.90, CNBC informs.

Silver also experienced a decline, falling 5% to $71.53 per ounce, while silver futures lost 7.7%, ending at $71.62. 

The price drop reflects the broader economic and political factors at play, including geopolitical instability and growing inflation risks.

Wall Street sells gold and silver to retail investors

Retail investors have purchased over $70 billion in gold ETFs since Q2 2025, with their buying activity tripling in the last 6 months. Meanwhile, institutional investors have sold $1 billion in gold ETFs, with outflows intensifying in late January after a 20% crash in gold prices over just 3 days. 

In addition, silver ETFs saw $10 billion in retail purchases over the past year, while institutions sold $200 million. Retail investors continue to show strong interest in precious metals, while institutional investors are pulling back.  

 

Key drivers of the price decline

The drop in gold and silver prices is linked to traders' concerns about rising inflation, driven by global events like the conflict with Iran

Additionally, there is pressure from rising energy costs and supply shortages. 

Although inflation risks continue to support high gold prices, demand for safe-haven assets has been declining as economic indicators improve.

Earlier, we reported that oil prices climb $5 after Iran attacks energy facilities in Qatar and Saudi Arabia.

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