Gold and silver prices have staged a significant rebound as of February 5, 2026, recovering from a historic sell-off in late January that saw gold drop nearly 17% and silver collapse by 30% in a single session. International spot gold has reclaimed the $5,000 per ounce threshold, trading near $5,054.60. Spot silver has surged back to approximately $90.00 per ounce, recovering from a recent low of $72.00.
Market Drivers of the Rebound
Geopolitical Safe-Haven Demand: Renewed tensions between the US and Iran, including the downing of an Iranian drone, have driven investors back to safe-haven assets.
Currency and Economic Shifts: A softening US Dollar Index and a partial US government shutdown have eased pressure on dollar-priced commodities.
Buying the Dip: Analysts suggest the sharp correction triggered "dip-buying" as underlying demand remains strong despite recent volatility.
Margin Adjustments: The recovery followed a period of forced liquidations caused by CME Group increasing margin requirements for precious metal futures by up to 15%.
Major financial institutions maintain bullish long-term forecasts despite the recent volatility. J.P. Morgan upgraded its end-of-2026 gold forecast to $6,300/oz, citing structural central bank buying. For silver, while volatility remains high, analysts suggest a potential target of $100–$105/oz by March 2026 if gold's momentum continues.
"Place a trade with us via this post mentioned coin's & do support to reach maximum audience by follow, like, comment, share, repost, more such informative content ahead"
The precious metals market is currently experiencing historic and extreme turbulence, marked by record-shattering highs immediately followed by some of the sharpest one-day percentage declines in modern trading history.
Recent Market Volatility Gold Price Swings: Gold recently broke the $5,000 per ounce milestone for the first time. However, it has since faced massive intraday swings, plunging by over 10% in a single session—one of its worst days in three decades. Silver Crash: Silver hit record highs above $120 per ounce before suffering a catastrophic retreat. On January 30, 2026, silver plunged as much as 30%–33% in a single day, surpassing the intensity of the famous 1980s Hunt brothers' crash. Base Metals Disruption: The turbulence extended to industrial metals like copper, which hit record highs before sinking. Technical issues even forced the London Metal Exchange to delay trading briefly during the frenzy.
Primary Drivers of Turbulence Geopolitical Escalation: Prices have been supercharged by escalating tensions in the Middle East, including reports of a "massive armada" heading toward Iran, and the U.S. taking action against the leadership in Venezuela. Monetary Policy Shifts: Volatility spiked following news that Kevin Warsh is being prepared as the next Federal Reserve Chair, signaling a potential shift toward lower interest rates despite his hawkish reputation. Currency & Trade Tensions: A fluctuating U.S. dollar, which hit a four-year low before rebounding, alongside aggressive tariff threats from the Trump administration, has forced investors into and out of "safe-haven" assets. Market Mechanics: Analysts have described the market as "broken," citing price movements that are detached from physical supply and demand, driven instead by high-frequency trading and massive profit-taking.
Current Trading Outlook Experts suggest that while the long-term bull market for gold and silver may remain intact due to global instability, the short-term environment is high-risk. Traders are advised to monitor the Kitco Live Charts and upcoming inflation data for signs of stabilization.
"Place a trade with us via this post mentioned coin's & do support to reach maximum audience by follow, like, comment, share, repost, more such informative content ahead"