Precious Metals Stage Recovery After Historic Rout
Gold and silver prices are staging a recovery this week after experiencing one of the most dramatic selloffs in decades, with dip-buying helping to support prices as investors step in on pullbacks.
As of February 12, 2026, gold is trading at $4,949.24 per ounce, while silver has climbed to $82.49 per ounce—up $0.61 from the previous day. Despite the recovery, both metals remain well below their January highs, with volatility continuing to grip the precious metals market.
The January Crash: A 40-Year Veteran Calls It 'Unprecedented'
The dramatic selloff began in early February after both metals hit all-time highs in late January. Gold dropped 21.2% from its record high near $5,600 per ounce, falling to an intraday low of $4,404 on February 2. Silver suffered an even steeper decline, plunging 41.1% from its all-time high above $121 per ounce to $71.67.
"Having observed this market for 40 years, this level of volatility is unprecedented," said Bruce Ikemizu, formerly head of ICBC's Tokyo precious metals desk.
Saxo Bank's Strategy Team characterized the market turmoil bluntly: "A historic rally across metals has turned into an equally historic rout."
Silver's Remarkable Year-Over-Year Performance
Despite the recent volatility, silver's long-term performance remains impressive. The white metal has gained more than 155% over the past year, rising from $32.23 per ounce in February 2025 to current levels above $82.
The surge has been attributed to limited supply and growing industrial demand, particularly from the solar energy and electronics sectors. Silver's dual role as both a precious metal and an industrial commodity has helped support prices even during periods of financial market stress.
Market Factors Driving Volatility
Multiple exchanges raised trading margins in response to the extreme volatility, and the iShares Silver Trust (SLV) saw $40 billion in trading volume on a single Friday—exceeding the combined volume of Apple and Amazon.
Several factors continue to influence precious metals prices. Geopolitical tensions remain elevated, while uncertainty around U.S. monetary policy keeps investors on edge. Market watchers are closely monitoring which direction Kevin Warsh, President Trump's Federal Reserve chair nominee, will take interest rate policy this year.
Outlook: JPMorgan Sees Gold at $6,300
Despite the recent correction, some analysts remain bullish on gold's prospects. JPMorgan forecasts that gold prices could reach $6,300 per ounce in 2026, suggesting the current pullback may present a buying opportunity for long-term investors.
Inflation expectations continue to support precious metals, though a stronger U.S. dollar may limit near-term price gains. For now, the market appears to be finding its footing after the historic selloff, with dip-buyers providing crucial support at lower levels.
Sources: Fortune, BullionVault, Trading Economics, CBS News