Gold, Silver, Copper Plummet: 4 Key Reasons Behind Precious Metals Crash

• Gold, silver, and copper experienced sharp declines on December 29 after a strong rally, with copper seeing the biggest fall of about 13%.
• Profit-booking by investors after significant returns in 2025 was identified as a primary driver for the market correction.
• Easing geopolitical tensions, particularly hopes for an end to the Russia-Ukraine war after a meeting between US President Donald Trump and Ukrainian President Volodymyr Zelenskyy, reduced demand for safe-haven assets.
• China's potential licensing system for physical silver exports from 2026-2027 raised supply concerns, impacting silver prices.
• CME Group's increase in initial margin for March 2026 silver derivative contracts from $20,000 to $25,000 triggered liquidations, further pressuring silver.

Why It Matters: Precious metals crashed due to profit-booking, easing tensions, China's policy, and CME margin hike.