In late January and early February 2026, gold and silver experienced one of the most violent corrections in decades. After surging to record highs, gold near $5,600/oz and silver above $120/oz, prices plummeted sharply, erasing trillions in combined market value across sessions!
Reports vary on exact figures, but estimates range from $7 trillion in a single dramatic day to $10–15 trillion over multiple sessions, driven by cascading liquidations in highly leveraged positions.
Key Factors Behind the Crash:
Over-leveraged speculation and forced margin calls after exchange hikes (e.g., CME increases of 30–36%).
Strong U.S. economic data reducing rate-cut expectations.
Dollar rebound and shifting geopolitical signals.
Algorithmic trading and liquidity squeezes amplifying the selloff.
As of February 17, 2026, prices have partially stabilized but remain well below peaks:
Gold trades around $4,900–$5,000/oz.
Silver hovers near $75–$77/oz.
Despite the rout, long-term fundamentals (central bank buying, industrial demand for silver in tech/renewables, and inflation hedging) suggest potential recovery, though volatility persists.
