Precious metals have reversed sharply following a surge that pushed gold and silver to record highs in late 2025. The correction, triggered by shifts in policy expectations, market mechanics and geopolitical risk, highlights the need for disciplined positioning in volatile environments.
A key turning point came when markets reassessed the direction of US monetary policy. Investors anticipating a dovish Fed nomination were met instead with a more hawkish stance, prompting a rise in interest rate expectations. That shift undermined part of the rationale for elevated gold prices. The situation was compounded by increased margin requirements on metals futures, which forced some leveraged traders to exit. Simultaneously, a reduction in geopolitical risk removed another pillar of support for safe‑haven assets.
The resulting sell-off was swift. Gold dropped from over $2,400 to under $2,000 per ounce in a matter of days, and silver experienced even greater volatility. Mining equities, many of which had outpaced the metals themselves on the way up, gave back significant ground.
TEAM had already trimmed exposure to gold and silver in its core portfolios before the correction. This was a response to extreme overbought conditions rather than a shift in the firm’s long‑term outlook. The reduction helped cushion performance during the drawdown and reflects a broader focus on risk management and valuation discipline.
TEAM plc (LON:TEAM) is building a new wealth, asset management and complementary financial services group. With a focus on the UK, Crown Dependencies and International Finance Centres, the strategy is to build local businesses of scale around TEAM’s core skill of providing investment management services.
