Gold and silver were suddenly sold off, and the stock market plunged, triggering algorithmic selling.

Due to concerns about artificial intelligence causing widespread selling in the financial markets, gold prices also suffered a heavy blow on Thursday, with algorithmic traders' selling pressure seemingly amplifying the decline. Silver and copper also fell. As investors worried that artificial intelligence could erode future profits of some companies, the U.S. stock market plummeted, leading to a decline in risk assets across the board. The sharp drop in gold did not have a clear catalyst, with Bloomberg macro strategist Michael Ball stating that the decline was likely exacerbated by selling from commodity trading advisors who use computer models to bet on price trends. Gold prices fell by as much as 4.1%, while silver plummeted by 11%. Copper prices on the London Metal Exchange dropped by 2.9%, before recovering some of the losses. Nicky Shiels, head of metal strategy at MKS PAMP SA, suggested that margin calls may have also intensified the selling, forcing some investors to liquidate positions in commodities, including metals. "We're all scratching our heads. Everything happened too fast, it feels like a 'flight to safety' action," Shiels said. She added that in times of extreme market pressure, safe-haven assets like gold may also be sold off by investors in need of liquidity. Some of the selling in gold and silver on Thursday may also have been driven by profit-taking, as the rapid recent rise in these two metals has been driven to some extent by speculative buying. Ole Hansen, commodity strategist at Saxo Bank, said, "For gold and silver, a significant portion of trading is still driven by emotion and momentum. They will struggle in days like these."