Gold and silver prices experienced a sharp, sudden drop during trading. Spot silver plunged by approximately 5% at one point before paring some losses, while spot gold fell below $4,900 per ounce.

Simultaneously, futures for the three major U.S. stock indices also declined across the board. The Nasdaq index dropped by 0.8%, Japan's Nikkei 225 index fell by 0.5%, and the FTSE China A50 futures index declined by over 0.7%.

A market analyst noted that trading activity was subdued due to holidays in multiple markets and a lack of new positive catalysts. Traders are closely monitoring developments between the U.S. and Iran, with recent military exercises by Iran enough to dampen market risk appetite.

On Monday, Iran's Foreign Minister met with the head of the UN nuclear watchdog in Geneva, ahead of a second round of nuclear talks with the U.S. Previous threats from the U.S. regarding Iran's nuclear program have contributed to market uncertainty.

Analysts suggested that with reduced liquidity due to holidays in the U.S. and Asia, Tuesday's market movements may be difficult to interpret reliably. However, investors who remained active appeared cautious. The decline in precious metals indicates that the psychological impact of the late-January crash in gold, silver, and equities continues to linger.