Commodities Slump Rattles Markets As Gold, Silver, Oil Sell-Off Deepens

Commodities markets experienced a sharp decline Monday, triggering volatility across financial markets as precious metals, oil and industrial metals sold off heavily, reflecting investor caution amid shifting expectations for U.S. monetary policy and a stronger dollar.

Gold prices slid about 9% to their lowest level in more than two weeks, while silver fell more than 13% after both metals hit record highs last week, according to Reuters reporting on the downturn. Oil also dropped nearly 5.5%, easing from multi-month highs, and London Metal Exchange copper fell almost 5%, underscoring the breadth of the sell-off across key commodity classes. Reuters quoted Vivek Dhar, a commodities strategist at Commonwealth Bank of Australia, saying investors viewed the market reaction to the likely next U.S. Federal Reserve chair as “more hawkish,” which added pressure on commodities alongside broader risky assets.

The downturn in commodities has rippled into broader markets. U.S. stock futures and major Asian and European equity benchmarks opened lower, reflecting investor unease ahead of a week packed with major earnings reports and economic data releases. Analysts said that rising expectations for sustained higher interest rates — especially following President Donald Trump’s nomination of Kevin Warsh as the next Fed chair — have strengthened the U.S. dollar, diminishing the appeal of dollar-priced commodities as an inflation hedge and safe haven.

Meanwhile, The Guardian reported that the sell-off in gold and silver has been described by some market watchers as a “metals meltdown,” with dramatic swings in bullion prices contributing to jitters in global stock markets and prompting broad repositioning by investors.

The slump highlights the market’s sensitivity to central bank leadership expectations and evolving macroeconomic signals, with commodities, often seen as a hedge against inflation, reacting sharply as traders adjust portfolios in anticipation of tighter financial conditions.