Gold and silver prices saw their steepest one-day declines in years, halting a stunning rally that had driven precious metals to record highs.

Spot gold (GC=F) plunged as much as 6.3% to just below $4,100 per troy ounce, marking its largest intraday drop since 2013. Silver (SI=F) also slumped more than 8%, its worst daily performance since 2021.

The sharp reversal came as easing trade tensions between Washington and Beijing reduced demand for safe-haven assets. A stronger US dollar added further pressure, while technical indicators signaled overbought conditions after weeks of rapid gains.

Gold and silver had both surged in recent months amid geopolitical uncertainty, central bank buying, and speculation about lower interest rates. But analysts said the latest pullback suggests that traders are taking profits and reassessing valuations as global risk sentiment improves.

“The rally had gone too far, too fast,” said one market strategist. “With the dollar rebounding and US yields stabilizing, a correction in precious metals was inevitable.”

Despite the selloff, both metals remain significantly higher for the year, with gold up more than 25% and silver nearly 30% amid sustained investment demand and inflation concerns.