Gold and silver fell sharply today, reversing from record highs as investors locked in profits following an extraordinary rally in precious metals.

Gold dropped nearly 5% to around $5,100 after topping $5,500 a day earlier, while silver slid about 10% to near $107 after surging to $120 in early trading.

The pullback wiped out an estimated $2.7 trillion in gold market value and roughly $800 billion in silver. Gold remains up about 20% over the past month, while silver has risen nearly 50%, underscoring how stretched the rally had become.

The move came alongside a broader selloff across global markets. The S&P 500 fell about 1%, while the Nasdaq dropped nearly 2% as technology stocks weakened. Bitcoin also slid roughly 5%, falling back to around $85K, a level last seen in mid-December.

Profit taking followed a period of intense demand for precious metals from both institutional and retail investors, including central banks and crypto-native capital. Analysts said the rally had pushed positioning to extremes, leaving prices vulnerable to a sharp correction.

Geopolitical tensions added to volatility after US President Donald Trump pressed Iran to negotiate a nuclear deal, prompting threats of retaliation from Tehran. Markets also reacted to monetary policy uncertainty after the Federal Reserve held interest rates steady.

Investors are awaiting Trump’s announcement of a replacement for Fed Chair Jerome Powell ahead of an expected rate cut later this year.

At press time, metals had recovered modestly, with gold trading near $5,250 and silver around $112. Traders said profit-taking remains a risk as markets digest the scale of recent gains.