Gold, Silver Under Pressure After Peaks: Should You Invest And Hold Precious Metals Or Sell Off?

The spectacular rally in gold and silver has hit a speed breaker. After touching record highs in early 2026, both metals corrected sharply as markets reacted to tighter financial conditions and regulatory pressure. The nomination of Kevin Warsh as the next US Fed chair reignited fears of higher interest rates, while CME’s margin hikes triggered forced selling across futures markets. Gold and silver ETFs plunged, exposing how quickly leveraged optimism can reverse. Though prices have stabilized for now, uncertainty persists. Analysts remain bullish on gold’s long-term fundamentals, citing aggressive central bank purchases and geopolitical risk, while silver’s smaller market size makes it vulnerable to sharp swings. Investors are now weighing whether this drop is a buying opportunity or a warning signal. The correction underscores a timeless truth: precious metals are defensive assets, but timing and discipline separate winners from panic sellers.