NEW YORK: Gold prices plunged five percent on Thursday, erasing roughly $3 trillion in market value after the precious metal briefly touched a record high above $5,500 per ounce. The sharp decline came amid escalating geopolitical tensions between Iran and the United States, though experts said the move was largely driven by profit-taking.
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Silver saw an even steeper drop of eight percent, while copper and nickel also recorded significant losses. Many investors on social media described the crash as the largest liquidity swing in history, with some alleging “market manipulation” as trillions of dollars were wiped out within minutes.
Boomers are going to have a heart attack when they see the price of Gold and Silver today.
We call it a normal day in the trenches, buy the dips on our favorite coins and chill. pic.twitter.com/fMKESACUuf
— Kien Nguyen (@KienNguyen) January 29, 2026
Despite the sudden sell-off, gold and silver remain on track for their strongest month since the 1980s, reflecting continued investor confidence in precious metals as a safe haven. Several investment portfolios are maintaining positions in gold, with Tether CEO announcing plans to allocate 10–15 percent of the company’s portfolio to physical gold. The SPDR Gold Trust also reported holdings at a four-year high.
The market volatility comes as President Donald Trump demands Iran negotiate a nuclear deal or face the US “beautiful armada,” while Tehran has threatened unprecedented retaliation. Analysts note that heightened geopolitical risks often lead to short-term spikes followed by corrective profit-taking, which may explain Thursday’s dramatic swings.
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Market observers said that while Thursday’s crash was sharp, the underlying demand for gold and other precious metals remains strong, as investors hedge against economic uncertainty and potential geopolitical escalation in the Middle East.