Gold down, silver slides further

February 2, 2026 (MLN): Fresh turbulence rattled precious-metals markets this week, wiping out much of the momentum that had driven gold and silver to record territory only days earlier as investors rushed to secure profits and the U.S. dollar strengthened.

Gold extended its decline on Monday, adding to the steep losses recorded at the end of last week.

Spot gold fell 7.27% to $4529.25 an ounce as of [11:09 PM] PST, according to data reported by Mettis Global, after a 8% plunge that  dragged bullion below the $5,000 threshold.

 The pullback represents one of the sharpest short-term reversals in recent memory following a powerful rally that had propelled prices to all-time highs.

Silver mirrored the volatility, after climbing rapidly on safe-haven demand and speculative inflows, Spot silver fell 9.91% to $76.68 an ounce as of [11:09 PM] PST, according to data reported by Mettis Global.

 The metal endured a dramatic sell-off, diving around 25%, its worst single-day drop since 1980.

Market sentiment shifted quickly alongside developments in U.S. monetary policy leadership. Hopes for interest-rate cuts were overshadowed by uncertainty after President Donald Trump nominated former Federal Reserve Governor Kevin Warsh to succeed Chair Jerome Powell when his term ends in May, according to CNBC.

Warsh is widely perceived as favoring tighter monetary policy, a view that helped lift the dollar and pressure non-yielding assets such as gold and silver.

Rising rate expectations also increase the opportunity cost of holding precious metals compared with interest-bearing government bonds.

Geopolitical risk premiums eased slightly as well after remarks from President Trump hinted at potential progress toward a deal with Iran, reducing some safe-haven demand.

Even with the recent downturn, both metals remain higher for the year.

Silver is still up around 16% year to date, while gold holds an approximate 8% gain.

Last year delivered far stronger advances, with gold rising about 65% and silver surging roughly 145%, highlighting how quickly enthusiasm in the precious-metals trade can reverse

Copyright Mettis Link News