Investors rush to gold as tech and Bitcoin crash

"In this environment, gold is kind of holding its own and silver is caving in under the risk-off," noted Ilya Spivak, head of global macro at Tastylive.

To mitigate risks associated with heightened volatility, CME Group raised margin requirements for precious metals for the third time this year.

Spot gold rose 2.3% to US$4,879.45 per ounce (up 0.3% for the week), while US gold futures for April delivery added 0.2% to US$4,897.20.

In contrast, silver experienced a wild session; after plummeting 10% in early Asian trade to a 1.5-month low (below US$65), it rebounded 3.8% to US$73.91.

Despite this, the white metal ended the week down over 13%, its worst weekly fall since 2011.

Other metals also fluctuated: Platinum added 0.4% to US$1,993.95 (after hitting an all-time high of US$2,918.80 on Jan 26), and palladium gained 2.2% to US$1,651.74; both finished the week lower.

In China, the UBS SDIC Silver Futures fund slumped by its 10% daily limit for the sixth straight session.

However, ANZ analyst Soni Kumari suggested the correction before the Chinese New Year could spur buying from Chinese consumers.

Bloomberg reports that a sudden retreat from risk has swept Wall Street.

Unlike the panic caused by President Trump’s trade war last April, this selloff is driven by a slow drumbeat of anxiety over valuations.

The S&P 500 slid 1.2% (its third daily decline), while the Nasdaq 100 extended its deepest slide since April.

Meanwhile, US Treasuries rallied as a haven of last resort.

Tech faced pressure after AI startup Anthropic’s new model underscored competitive threats.

Amazon.com Inc. plunged over 11%, and Alphabet Inc. slipped, as ambitious spending plans (US$200 billion for Amazon) fueled fears of AI overspending.

Macro sentiment worsened after Challenger, Gray & Christmas Inc. reported the highest January job cuts since 2009, and uncertainty loomed over the Fed’s direction if Trump’s nominee, Kevin Warsh, replaces Jerome Powell.

Bitcoin crashed over 13% to ~US$63,000, erasing post-election gains and dragging down exchange-traded funds and treasury companies like Strategy Inc. "The fear and uncertainty are evident," said Chris Newhouse of Ergonia.

The rout reached Asia, with South Korean stocks sinking over 5%, led by Samsung and SK Hynix.

"People are definitely going more defensive... it’s a shoot first and ask questions later environment," said Brian Frank of Frank Funds.

Kim Forrest of Bokeh Capital Partners added that momentum stocks had run up too far and were due for a "reset."