Gold, Silver Plunge as Traders Book Profit from Record Rallies

Gold and silver slumped as traders booked profit following a powerful year-end rally that sent both metals to record highs, with thin market liquidity exacerbating the price swings.

Spot gold fell as much as 5%, marking the biggest intraday drop since Oct. 21 and the second time this year the precious metal plunged that much in one day. Silver tumbled 11% in its biggest intraday decline since September 2020. Both metals posted a sharp retreat from fresh all-time highs that triggered signals that their rallies had run too fast, too soon.