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Gold and Silver Market Analysis and Prices in February 2026
As of right now (February 2, 2026), the gold and silver markets are experiencing sharp volatility, with significant price declines following a historic rally that peaked in January. Gold has dropped about 21% from its all-time high, while silver lost nearly 40% in a single day, marking one of the largest corrections in precious metals history. This pullback comes after a strong 2025, where global gold demand reached a record 5,002 tons, driven by central bank buying and financial market investments. Silver prices more than tripled over the past year but are now facing a violent correction.
Current Prices
Gold (XAU/USD): Trading around $4,700–$4,800 per ounce, with a decline of up to 4% today. For example, today's opening price was $4,781.35, following yesterday's close at $4,762.61, reflecting a slight 0.39% gain in some reports, though it remains under strong selling pressure. In other sources, the price hits $4,703, with a daily range between $4,600 and $4,855. Compared to last month, the price is up 5.7–7.35%, and it remains 67% higher than a year ago.
Silver (XAG/USD): Trading around $78–$82 per ounce, with a drop of up to 7.73% today. It reached $81.67 in some reports but fell to $78.59 in others, after a modest $2.75 rise from yesterday. Over the past month, the price rose 1.58–2.64%, and it is up 147–150% compared to last year, despite wiping out most of its 2026 gains so far.
The gold-to-silver ratio currently stands at around 58:1, suggesting silver remains relatively cheap compared to gold, with physical purchase premiums on coins rising 9–11% above spot due to strong demand.
Reasons for the Current Crash
The sharp decline stems from several interconnected factors:
Strengthening U.S. Dollar: President Trump's appointment of Kevin Warsh as Federal Reserve Chair has led to a surge in the dollar's value, making precious metals more expensive for foreign buyers and reducing their appeal as a safe haven.
Increased Margin Requirements: The CME raised margin requirements on gold futures to 8% (from 6%) and on silver to 15% (from 11%), forcing traders to liquidate over-leveraged long positions, especially in silver after its excessive rally.
Correction After Historic Rally: Gold hit a high of $5,608 in January, and silver exceeded $121, fueled by geopolitical fears and inflation concerns. The correction resulted from "overcrowded" long positions and rising real yields.
Other Factors: Expected higher interest rates, investment flows shifting to small-cap stocks and cyclical sectors like energy and materials, with a negative impact on gold as a non-yielding asset.
Technical Analysis
Gold: The price is approaching major support at $4,405, with potential for a minor bounce if it holds. First resistance is at $4,662, and a break below support could push it to $4,361–$4,476. Charts show a violent correction, but extreme volatility indicators support a temporary rebound.
Silver: Trading in the $80.13–$85.40 range, with a potential downside break toward $76.89–$71.38 if it closes below $80.13. Breaking above $85.40 could target $87.81–$91. Some analyses see an inverse head-and-shoulders pattern forming around $75, signaling a possible bottom and rebound toward $90–$95.
Forecasts and Risks
Short-Term: Volatility is expected to persist, with potential minor rebounds for gold toward $4,938 by quarter-end and silver toward $86.24, if the dollar weakens or Warsh signals dovish policy. However, JPMorgan warns silver could return to $50 if the correction continues due to excessive liquidation.
Long-Term: Gold could reach $5,209 in 12 months, and silver $94.88, supported by industrial demand (especially solar for silver) and inflation fears. Risks include a stronger dollar and monetary policy shifts.
In conclusion, the market is in a correction phase after an overheated rally, but gold and silver remain attractive assets for inflation protection over the long term. Focus on buying at key supports while closely monitoring Federal Reserve decisions.
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