New Found Gold Plunges 8.95% Amid Precious Metals Selloff Driven by Profit-Taking and Margin Adjustments

New Found Gold Inc. plunged 8.9506% in pre-market trading on Dec. 30, 2025, amid a broader selloff in precious metals driven by profit-taking and margin adjustments. The sharp decline coincided with a 8.7% drop in silver prices—the largest single-day fall since February 2021—and a 4.5% slide in gold, as traders unwound positions after years of strong gains.

The sell-off reflects heightened caution in the commodities sector. Silver, which had surged over 300% from its $20-ounce 2025 start, faced aggressive profit-taking after hitting $80 an ounce. Market participants also cited margin calls on leveraged positions, intensifying downward pressure. Analysts note that while New Found Gold’s exposure to gold and silver makes it vulnerable to such swings, the stock’s volatility underscores broader investor anxiety over the sustainability of recent gains in inflation-hedge assets.

Despite the sharp drop, some observers caution against overreacting. While gold and silver have posted multiyear gains, structural factors like Fed rate cuts and inflationary pressures remain. However, near-term technical indicators suggest a potential consolidation phase as traders reassess risk-reward dynamics in the space.

Historically, sharp corrections in precious metals have often been followed by extended consolidation periods, allowing market fundamentals to reassert influence. Traders are now monitoring key support levels for gold and silver, as well as the overall sentiment in the metals sector following this recent turbulence.