Gold, silver stocks and ETFs sank in morning trading. ProShares Ultra Silver fell 22%; Hycroft Mining and ProShares Ultra Gold fell 12%; iShares Silver Trust and Endeavour Silver fell 11%; First Majestic Silver, Hecla Mining, and Anglogold Ashanti fell 10%; Pan American Silver and Eldorado fell 9%; Coeur Mining, Fortuna Silver Mines, Newmont Mining, Kinross, Gold Fields, and Agnico Eagle Mines fell 8%; Harmony Gold and Barrick Mining(B)$ fell 7%; SPDR Gold ETF and Gold Trust Ishares fell 6%.
Gold prices dropped over 5% on Thursday, falling for a seventh consecutive session, as the Middle East conflict increased energy prices and ignited inflation concerns, raising expectations that top central banks will keep borrowing costs elevated.
Spot gold fell 5.5% to $4,552.38 per ounce by 8:46 a.m. ET (1246 GMT), its lowest since early February.
U.S. gold futures for April delivery fell 7% to $4,554.70.
Gold is prized as a hedge against inflation and geopolitical turmoil, but because it does not generate interest, it tends to lose appeal in periods when rates are high.
Top central banks struck hawkish tones as the Iran war drove energy prices sharply higher but acknowledged the sheer uncertainty over the impact on the global economy called for caution in their next policy moves.
Benchmark Brent oil prices traded above $110 a barrel after Iran attacked energy facilities across the Middle East following Israel's strike on its South Pars gas field.
Meanwhile, a U.S. official and three people familiar with the matter said President Donald Trump's administration is considering deploying thousands of U.S. troops to reinforce its operation in the Middle East as the Iran war enters a possible new phase.
Analysts at SP Angel said gold has been hit by profit-taking and a stronger dollar, noting that after its strong rally in 2025, it is not surprising to see traders lock in gains to cover margin calls and rotate into fresh trades such as hydrocarbons amid renewed volatility.
Spot silver fell 10.7% to $67.26 per ounce. Spot platinum fell 6.8% to $1,886.13, and palladium lost 4.1% to $1,415.41.