According to a BBC report, the downturn followed a blistering run in precious metals markets through January, when investors had poured money into gold and silver as so-called safe haven assets amid rising geopolitical uncertainty and concerns over the independence of the U.S. Federal Reserve.

Last Friday’s sell-off marked one of the most dramatic single-day losses in decades for bullion markets, with gold declining sharply from recent all-time highs and silver enduring an especially steep fall. Analysts say the reversal wiped out much of the earlier rally, reversing gains built up over several months of heightened market volatility.

A key trigger for the sell-off was President Donald Trump’s nomination of Kevin Warsh as the next chair of the U.S. Federal Reserve. Warsh’s reputation as a more hawkish monetary policymaker helped lift expectations of tighter monetary conditions, prompt a surge in the U.S. dollar, and dampen demand for non-yielding assets such as gold and silver.

The strengthening of the dollar in the wake of the Warsh nomination made precious metals more expensive for holders of other currencies, adding to the downward pressure. Traders also pointed to heightened margin calls and forced selling in futures markets as contributing factors.

“Prices were increasingly overextended,” said Mark Matthews, head of research for Asia, noting that the swift shift in investor sentiment compounded losses. “When safe-haven demand ebbed with hopes for monetary clarity, many positions unwound rapidly,” he added.

Market watchers now await fresh data on interest rates and global economic trends as the precious metals complex adjusts to the sharp shift in market dynamics