Gold and silver prices plunge over 25% amid war, but China’s strong physical demand persists.

Gold and silver prices have sharply declined by about 25.5% and nearly 50% respectively since their January peaks, entering technical bear markets due to war-related market panic and liquidation. Despite this, physical demand in China remains robust, with silver imports hitting an eight-year high driven by strong demand for physical bars and solar cell manufacturing. Analysts suggest the selloff is driven more by panic and positioning than fundamentals, with expectations that central banks may intervene to support markets amid rising deficits and recession risks. Mining stocks have also suffered losses, though some diversified miners remain relatively resilient due to copper exposure and ongoing projects.