Gold prices fell sharply on Thursday, dropping around five percent after touching a record high. The decline wiped out nearly $3 trillion in market value and triggered heavy volatility across commodities.
Earlier in the session, gold surged past $5,500 per ounce as investors rushed toward safe-haven assets. Analysts said the sudden reversal came largely from aggressive profit-taking rather than a shift in fundamentals.
Silver recorded even steeper losses, falling about eight percent. Copper and nickel also moved lower during the sell-off.
The sharp move sparked strong reactions on social media. Several users described the swing as unprecedented and accused markets of manipulation. One post claimed trillions were erased within minutes, calling it the largest liquidity swing ever recorded.
‘This doesn't seem like a store value… How are we supposed to trade this?’ – Phoenix Futures’ Grady on gold’s shock selloff
Precious metals markets were reeling on Thursday afternoon in the wake of one of the most dramatic and sudden selloffs ever seen, after #gold plunged… pic.twitter.com/pyIbbs6Pp0
— Kitco NEWS (@KitcoNewsNOW) January 29, 2026Despite the sharp drop, gold and silver remain on track for their strongest monthly performance since the 1980s. Portfolio data continues to show sustained investor confidence in precious metals.
Support for the sector is also evident among large institutions. Tether’s chief executive recently said the firm plans to allocate 10 to 15 per cent of its investment portfolio to physical gold.
Holdings in the SPDR Gold Trust also climbed to a four-year high, signalling continued long-term demand.
Read: Gold Surges Past $5,500 as Investors Rush to Safe Havens
Market uncertainty has intensified amid rising tensions between Iran and the United States. Donald Trump has urged Iran to negotiate a nuclear deal, warning of military consequences. Tehran has responded with threats of unprecedented retaliation.
Analysts said geopolitical risk remains a key driver for precious metals. They added that sharp pullbacks are likely as traders lock in gains after rapid rallies.
