Gold and silver wavered, after suffering their steepest selloffs in years on Tuesday as concern their dizzying rallies in recent weeks had left them overvalued.

Spot gold traded near $4,140 an ounce after tumbling as much as 6.3% in the previous session, the biggest intraday drop in more than a dozen years. Silver edged higher after being down 8.7% at one point on Tuesday. The slumps came after technical indicators showed scorching rallies for both metals were likely overstretched.

The pullback brought an abrupt halt to rapid advances that have been underway since mid-August. The so-called debasement trade, in which investors avoid sovereign debt and currencies to protect themselves from runaway budget deficits, and bets the Federal Reserve will make at least one outsized rate cut by the

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