AI stock crash hits metals: Gold drops to $5,174; silver stays volatile

Global markets turned volatile after a steep fall in AI stocks. The technology-heavy Nasdaq-100 recorded sharp losses as leading AI companies declined within days. Shares of Nvidia, AMD, and Palantir Technologies fell more than 25% during the correction. The total market value erased from AI-linked stocks was estimated at $1.1 trillion. Many investors sold profitable assets to manage losses and meet margin calls. This included selling in gold and silver, which had recently seen strong gains.

Gold fell to $5,174 per troy ounce, down more than 1% in a single session. The drop came even though stock markets were under pressure. Usually, gold rises during market stress. However, this time the US dollar strengthened sharply. Officials at the Federal Reserve signaled that they remain focused on controlling inflation. This reduced expectations of early interest rate cuts in 2026. Despite the fall, gold remains close to its recent highs. Analysts see immediate support around $5,150. If prices move above $5,250 again, bullish momentum could return later in the year.

Silver traded near $87 per ounce after touching $87.54 in the previous session. The metal showed sharp swings during the day. Silver reacts not only to investor sentiment but also to industrial demand. It is widely used in solar panels, electronics, and electric vehicles. Expectations of slower AI infrastructure spending raised concerns about near-term demand. Still, long-term demand from renewable energy and technology sectors remains strong.

The direction of gold and silver will depend on three main factors: the US dollar, Federal Reserve policy, and stock market stability. If inflation eases and the Federal Reserve signals rate cuts, gold and silver may recover. If the dollar remains strong and stock markets stay unstable, prices could remain under pressure in the short term.