Gold and silver are sharply lower today as precious metals unwind after an exceptionally volatile and extended rally. By mid-afternoon (around 3:16 PM ET), gold futures fell to $4,858/oz, while silver futures dropped to $74.40/oz, marking one of silver’s steepest single-day pullbacks in months. (COMEX pricing, Feb 5, 2026)
5 key drivers behind today’s move
1) Technical selling after extreme momentum
Both gold and silver entered the session stretched after repeated tests of major technical levels earlier this week. Today’s decline reflects technical selling and momentum unwinding, rather than a shift in long-term fundamentals.
2) Capital rotation out of crowded trades
After a powerful multi-month run, metals had become a crowded trade. As volatility spiked, traders rotated capital away from precious metals and into other asset classes, accelerating downside pressure.
3) Silver volatility amplifying losses
Silver is once again exaggerating gold’s move. With thinner liquidity and heavier speculative positioning, silver’s nearly 12% drop highlights how quickly momentum can reverse once selling begins.
4) Dollar strength adding pressure
A firmer U.S. dollar weighed on metals throughout the session. When the dollar strengthens, it often pressures non-yielding assets like gold and silver, especially during periods of elevated volatility.
5) Futures unwinding and forced liquidation
The speed of today’s move suggests margin unwinds and forced liquidations played a role, particularly in silver. These dynamics tend to create sharp, emotionally driven selloffs that overshoot in the short term.
What to watch next (quick checklist)
- Whether gold finds support near the $4,800–$4,850 zone
- If silver stabilizes after today’s sharp liquidation
- U.S. dollar direction into the close
- Treasury yield movement and real-rate expectations
- Signs of follow-through selling vs. early stabilization
Bottom line
On Feb 5, 2026, gold and silver are undergoing a sharp corrective pullback following an exceptionally strong and volatile rally. Today’s action reflects technical selling, capital rotation, and futures unwinding — particularly in silver — rather than a breakdown in the broader precious-metals thesis.
