Precious Metals Stabilize After Dramatic Week
Gold and silver prices are attempting to find their footing this week following one of the most dramatic selloffs in precious metals history. The market turmoil has left investors questioning whether the multi-year bull run in precious metals has come to an end, or if this represents a buying opportunity within a longer-term uptrend.
Current Price Levels
As of February 5, 2026, spot gold settled at $4,926.9 per ounce, shedding 0.7% on the day after earlier in the week rebounding sharply with gains of 6% and 2% on Tuesday and Wednesday respectively. The yellow metal had touched $5,048 per ounce earlier in the week before pulling back.
Silver prices currently stand at $76.06 per ounce, according to CBS News. This represents a significant decline from the $100-plus per ounce levels the metal reached in late January, though it remains more than double its early 2025 valuations. Silver experienced particularly severe volatility, plunging as much as 20% to below $71 an ounce during Asian trading on Thursday.
Historic Losses Recorded
The scale of the recent selloff has been remarkable. Gold dropped 9% in a single session during the initial rout, while silver futures recorded their biggest one-day loss since 1980, falling nearly 30%. These declines wiped out weeks of gains that had been driven by a combination of geopolitical uncertainty, economic concerns, and speculative buying activity.
The sharp reversal came as pressure mounted from multiple directions, including a strong rebound in the US dollar following the nomination of Kevin Warsh as the next Federal Reserve chair. Warsh is widely viewed as a more hawkish choice for the position, which has implications for interest rate policy and dollar strength going forward.
Analyst Perspectives Diverge
Despite the dramatic price action, several major financial institutions maintain constructive outlooks on precious metals. UBS strategists characterized the selloff as "normal volatility within a continuing structural uptrend, rather than the end of the bull market." The firm projects gold prices reaching $6,200 by March before potentially easing to $5,900 by year-end.
Goldman Sachs has set a more conservative price target of $5,400 for gold by the end of 2026, suggesting some analysts expect more measured gains from current levels.
Year-to-Date Performance Still Positive
Despite the recent turbulence, precious metals remain in positive territory for the year. Silver prices are up approximately 16% since January 1, while gold has gained roughly 8% year-to-date. Both metals delivered extraordinary returns last year, with gold surging around 65% and silver posting an impressive 145% gain in 2025.
What Drove the Rally and Reversal
The January rally that preceded the selloff was fueled by heightened geopolitical risks, economic uncertainty, and growing concerns over Federal Reserve independence. These factors boosted safe-haven demand substantially. However, speculative buying, particularly from Chinese traders, added significant froth to the rally, leaving prices vulnerable to a sharp correction once sentiment shifted.
Market participants are now closely monitoring Federal Reserve policy signals and dollar strength as key drivers for precious metal prices in the weeks ahead. The question remains whether the structural factors that supported the multi-year bull market remain in place, or if the landscape has fundamentally changed.
Sources: CNBC, Bloomberg, CBS News, Fortune, UBS Research, Goldman Sachs