Precious metals retreated sharply on Tuesday, with gold prices settling 0.6% lower and extending losses to two of the past three sessions. Silver prices plunged 4.4%, snapping a six-session winning streak and marking the metal's worst daily decline in weeks. The selloff in silver came after a sustained rally that had pushed prices to multi-month highs.

Gold's modest decline contrasts with silver's steeper drop, highlighting divergent trading patterns in the precious metals complex. Market participants attributed the weakness to profit-taking following recent gains and a stronger U.S. dollar. The dollar's advance typically weighs on dollar-denominated commodities by making them more expensive for foreign buyers.

Traders are now watching key technical levels after the sharp reversal. Silver's 4.4% decline erased nearly all of its gains from the previous six sessions, raising questions about whether the metal's recent momentum has run its course. The precious metals market remains sensitive to interest rate expectations and inflation data, which could influence safe-haven demand.