Gold, Silver Continue To Decline – Analysts Warn Of Crowded Trades As Precious Metals Extend ‘Historic Rout’

• Gold futures for March 2026 deliveries fell 1% to $4,717 an ounce, while silver futures for March gained 2.6% to $80.6 an ounce.
• The U.S. Dollar index (DXY), which measures the greenback against six major currencies, climbed 0.1% higher to 97.3 in pre-market.
• JPMorgan reportedly expects robust central-bank and investor demand to lift gold prices to $6,300 per ounce by year-end.

Gold and silver prices continued to decline on Monday as selling pressure gripped the precious metals markets after months of relentless rallying.

Spot gold prices, which fell to $4,402 an ounce earlier in the session, recovered some of the losses but were still down 3% at $4,748 an ounce at the time of writing. Gold futures for March 2026 deliveries were down around 1% to $4,717 an ounce.

Meanwhile, spot silver, which crashed more than 26% on Friday, was down more than 5% at $80.2 an ounce. However, silver futures for March 2026 deliveries gained 2.7% to $80.6 an ounce.

On Friday, precious metals tumbled while the U.S. dollar strengthened after President Donald Trump nominated former Fed governor Kevin Warsh as the next Federal Reserve chair.

The U.S. Dollar index (DXY), which measures the greenback against six major currencies, climbed 0.1% to 97.3 in pre-market trading.

What Are Analysts Saying?

Analysts believe that trading in precious metals became too crowded, leading to the sharp sell-off that extended to Monday.

“Most buyers who were already sitting on profits had one foot out the door, ready to exit at any moment,” Jia Zheng, head of trading at Shanghai Soochow Jiuying Investment Management Co, told Bloomberg on Monday.

Ole Hansen, veteran commodities expert and Head of Commodity Strategy for Saxo Bank, noted that the historic surge in gold and silver turned into an “turned into an equally historic rout,” with the selloff spilling into Monday as traders pulled back from what had become a heavily crowded, one-sided trade.

JPMorgan said it expects robust central-bank and investor demand to lift gold prices to $6,300 per ounce by year-end, forecasting 800 tons of central-bank purchases in 2026 amid an ongoing trend of reserve diversification, according to a Reuters report on Monday.

ETF Watch

The iShares Silver Trust (SLV) slid to its lowest since January 9 in pre-market trading, after plummeting over 28% in the previous session. Friday’s sell-off wiped out SLV’s year-to-date gains from around 80% to roughly 30%. Meanwhile, the gains in SPDR Gold Shares ETF fell to 11.7% in 2026. 

Shares of silver miners First Majestic (AG), Hecla Mining (HL), and Pan American Silver Corp. (PAAS) edged down around 1%, while gold miners Newmont Corp. (NEM) and Barrick Gold (B) gained marginally in pre-market trading.

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