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Gold and silver prices have continued to fall after a dramatic reversal of a rally that had pushed precious metals to record highs.
In Asia trade on Monday, spot gold prices fell more than 9% to $4,403 (£3,222) an ounce, while silver slumped by 15% to less than $72 an ounce.
Prices had hit fresh records in January as investors parked money in so-called "safe haven" assets due to geopolitical uncertainties.
Markets had also been worried about the independence of the US Federal Reserve, but metals prices fell on Friday after President Donald Trump nominated Kevin Warsh, a former central bank governor, as its new chair.
The naming of Warsh was welcomed in general by the financial markets and the dollar rose by 1% on Friday against a number of currencies.
While the dollar ticked up, spot gold recorded its sharpest one-day drop since 1983 with a fall of more than 9%, while silver plunged 27%.
"The clear catalyst for Friday's sell-off appeared to be news... that Kevin Warsh had secured the nomination for Fed chair," said analysts at Deutsche Bank.
As well as a continued sell-off among commodities on Monday, Asian stocks also fell, with South Korea's benchmark Kospi leading losses as it dropped by more than 5%. Elsewhere in the region, the Hang Seng in Hong Kong dropped 3% and Japan's Nikkei 225 was more than 1% lower.
In global energy markets, the price of crude oil fell more than 5%. This is attributed to a number of factors including major oil producers agreeing to keep output unchanged and signs of de-escalating tensions between the US and Iran.
The rise in the value of the US dollar may also have had an impact, as the oil price is denominated in dollars and it makes it more expensive for non-US buyers.
With financial markets spooked by concerns including Trump's tariffs and fears that artificial intelligence-related stocks were overpriced, gold and silver repeatedly hit new record highs.
Wall Street analysts expect the Fed to cut interest rate at least twice in 2026. Gold tends to be seen as a more attractive investment when interest rates are low.
One of the biggest appeals of gold is its relative scarcity. Only around 216,265 tonnes of the metal have ever been mined, according to the World Gold Council trade association.
While economic worries can help push up the value of gold, prices can just as easily fall when those concerns ease or investors feel the gains have been overdone.
Mark Matthews, head of research for Asia at Bank Julius Baer, told Reuters that one of the likely explanations for sharp falls of the past couple of days "is that precious metals prices collapsed simply because they had already gone parabolic in the previous week".
"Once profit taking started, it just snowballed."
