Gold, Silver Prices Plunge After Record Highs: Sell, Hold, or Buy?

• Gold and silver prices experienced significant drops after reaching record highs in late January 2026, with trillions in market value erased.
• Spot gold fell from $5,594–$5,626 to $4,500–$4,700 per ounce, while silver plummeted over 30% from $121.64 to $73–$80 per ounce.
• Factors contributing to the decline include a strengthening US dollar, profit-booking, Kevin Warsh's nomination as Federal Reserve chair, and CME Group margin hikes.
• Experts remain bullish on gold long-term due to central bank demand and its role in diversification, with JP Morgan forecasting $5,000–$6,300 per ounce by end-2026.
• Silver's outlook is more cautious; its smaller market size leads to higher volatility, though some experts see the current fall as a natural correction.

Why It Matters: Precious metals saw sharp declines after record highs; gold remains a long-term buy, while silver requires careful consideration.