European mining shares fell sharply on Monday as gold and silver prices continued a steep decline. Spot gold slid nearly 5% to $4,634 an ounce, while silver dropped over 12% before settling near $78.53. The rally that pushed metals to record highs just days earlier has reversed for investors today.

European miners opened lower, with AAL down 1.5%, GLEN 1.7%, and SILc1 5.9%. Higher margin requirements on COMEX gold and silver futures—8% and 15% respectively—added pressure, raising the cost of leveraged positions. A firmer dollar also weighed on bullion demand for global investors in the market today and traders watching.

Despite a 16% year‑to‑date rise in silver and 8% in gold, the metals’ sharp pullback signals renewed caution. Analysts link the slide to uncertainty over U.S. rate cuts and the Fed leadership change, as President Trump nominated former governor Kevin Warsh to succeed Jerome Powell in the financial scene today.

Investors should monitor the dollar’s trajectory and margin changes, as they directly affect bullion pricing. European miners may see further volatility if the Fed’s policy outlook remains unclear. Analysts advise caution, noting that a stronger dollar and higher interest expectations could keep gold and silver in a defensive stance for.