Gold and other precious metals fell sharply as risk aversion linked to AI concerns spread across wider markets. Trading activity, including algorithmic trading, was linked to the speed of the move.<\/p>\n
Bullion dropped as much as 4.1%, while silver fell 11%. Copper on the London Metal Exchange fell 2.9%.<\/p>\n
By the New York close, spot gold was down 3.2% to USD4,920.37\/oz and silver was down 11% to USD75.15\/oz. Platinum and palladium also fell, and copper on the LME slipped 2.2%.<\/p>\n
The report also referred to profit taking after a strong prior rally in precious metals. The article notes that it was produced with the help of an AI tool and reviewed by an editor.<\/p>\n
We are seeing a sudden and deep selloff in gold, driven by widespread fear related to the future of Artificial Intelligence. The CBOE Volatility Index (VIX), a key measure of market fear, has shot up over 45% in the last 24 hours to 32.5, a level not seen since the market jitters of late 2024. This kind of panic triggers automated trading programs to sell assets across the board, which explains the sharp drop.<\/p>\n
For derivative traders, this massive spike in volatility makes buying options very expensive. The immediate opportunity is likely in selling premium to capitalize on the elevated fear, but this carries high risk if the selloff continues. We should watch for implied volatility on gold options to see if it begins to calm down, as this will signal the worst of the panic may be over.<\/p>\n
The fact that silver fell 11% while gold only fell around 4% is a critical signal for us. This has blown the gold-to-silver ratio out to over 65, showing that traders are dumping industrial and speculative assets faster than safe havens. This is classic risk-off behavior, where silver\u2019s industrial properties make it more vulnerable to fears of an economic slowdown than gold.<\/p>\n
We saw a similar, though less severe, profit-taking event in the summer of 2025 after an extended rally, which was followed by a period of consolidation. This current move appears to be a major flush-out of long positions that were built up during the recent stellar run to nearly $5,000. Traders should now watch to see if gold can hold support near the $4,800 level, which was a key area of activity last month.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" Precious metals plunged as AI-driven risk aversion and algorithmic trading \u0443\u0441\u043a\u043e\u0440\u0438\u043b\u0438 selloff; gold, silver, copper also slid.<\/p>\n","protected":false},"author":62,"featured_media":16975,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-41802","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/41802","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=41802"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/41802\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/16975"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=41802"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=41802"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=41802"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}