Gold and silver sell off as inflation fears grip global markets

Gold and silver joined a broad sell-off on Thursday, with the metals shedding around 3% and 5%, respectively, as fears about the Iran war and inflation gripped global markets.

At 6:26 a.m. ET, spot gold was down 2.8% at $4,682.78 an ounce. Front-month gold futures were down 4% at $4,700.20.

The biggest losses among individual mining stocks include Teck Resources, which was down 7%, while First Majestic Silver and Coeur Mining were down 6.2% and 6.1%, respectively.

The sell-off of among miners was also seen in the European trading session, with the regional Stoxx Europe Basic Resources index trading 4.5% lower. Shares of Fresnillo, the world’s leading silver producer and a major gold producer, were down 7%, while mining giant Antofagasta was 6.8% lower.

The moves in gold and silver come amid broader risk-off sentiment, which has seen global equities and government bonds fall in tandem. European stocks moved sharply lower in early trade, while futures pricing also points to U.S. equity markets falling at the open.

Investors are monitoring the ongoing U.S.-Iran war as the conflict heads towards its third week. The war is fueling concerns about an energy shock that will add inflationary pressure to economies across the globe. Oil and gas prices spiked on Tuesday after energy facilities in Iran and Qatar were hit by strikes.

Central banks are also watching developments in the Middle East. The U.S. Federal Reserve held rates steady on Wednesday and cited “uncertain” impacts arising from the conflict. The Bank of Japan also held interest rates steady, noting that inflation risks now are tilted to the upside due to the Iran war.

A series of central banks in Europe, including those of the U.K. and the euro zone, are due to update their respective monetary policies later on Thursday.

Switzerland’s central bank also flagged the war in Iran as it announced its decision to hold its key policy rate at 0%. The Swiss National Bank said its willingness to intervene in the foreign exchange market was rising as the war dragged on.

Gold and silver both enjoyed record-smashing rallies in 2025, surging 66% and 135%, respectively, over the course of the year. However, they have seen much more volatile trade in 2026, with silver futures suffering their ts biggest single-day blow since the 1980s at the end of January.

Paul Surguy, managing director and head of investment management and proposition at Kingswood Group, told CNBC in an email on Tuesday that gold has been “the beneficiary of a fair tailwind for some time,” but that the broader backdrop may be encouraging investors to rethink their holdings of the metal.

“Global markets have seen broad selloffs as investors search for the quickest assets to sell, perhaps we are now seeing the next leg of this phase where the perceived safe haven assets are sold to fund purchases…