Gold prices fell sharply on Thursday as widespread selling swept across financial markets due to concerns over artificial intelligence, with algorithmic traders appearing to amplify the downturn. Silver also dropped.

The sell-off in risk assets was triggered by a steep decline in U.S. stocks, as investors worried that AI could undermine the future profitability of certain companies. While there was no clear catalyst for the drop in gold, macro strategist Michael Ball suggested that the decline was likely magnified by selling from commodity trading advisors (CTAs), who use computer models to bet on price movements.

At one point, gold fell by 4.1%, while silver plunged by 11%, before both metals partially recovered their losses.

Nicky Shiels, head of metals strategy at MKS PAMP SA, noted that margin calls likely exacerbated the selling pressure, forcing some investors to liquidate commodity positions, including metals, to raise liquidity.

“We’re all trying to make sense of it. It happened so quickly—it felt like a ‘de-risking’ move,” Shiels said. She added that even safe-haven assets like gold can be sold by investors in urgent need of liquidity during periods of extreme market stress.

Part of Thursday’s selling in gold and silver may also have stemmed from profit-taking, as speculative buying had contributed significantly to the metals’ recent strong rally.

“For gold and silver, a considerable portion of trading is still driven by sentiment and momentum. On days like this, they struggle,” said Ole Hansen, commodity strategist at Saxo Bank.

As of 4:52 p.m. New York time, spot silver was down 10.72% at $75.2406 per ounce, while spot gold declined 3.19% to $4,922.09 per ounce.