Gold and Silver Plunge: Precious Metals Extend Historic Sell-Off
By John Nada·Feb 2, 2026·2 min read
Gold and silver extended their sell-off on Monday, with gold down 5% and silver over 10%. Analysts suggest potential for recovery if conditions shift.
Gold and silver continued their steep decline on Monday, following a massive sell-off that began last Friday. Spot gold fell around 5% to $4,611.4 per ounce, a stark contrast to the record highs just days earlier. This drop came after gold had already crashed nearly 10% on Friday, when prices dipped below $5,000 an ounce. Silver wasn’t spared either, down more than 10% at $76.1138 per ounce after a staggering 30% nosedive last Friday, marking its worst day since March 1980.
According to analysts, the pullback was fueled by a firmer dollar and profit-taking. The dollar index has strengthened about 0.8% since Thursday, making gold less attractive to foreign buyers. A shift in sentiment around U.S. interest-rate cuts, alongside President Trump’s nomination of former Fed Governor Kevin Warsh to succeed Jerome Powell, further spooked investors. Warsh's advocacy for tighter monetary policy has added strength to the dollar.
Despite these short-term pressures, Christopher Forbes from CMC Markets noted that gold’s retreat reflects a classic correction rather than a breakdown in its long-term bullish outlook. He indicated that while gold and silver prices may remain volatile, there’s still potential for a rebound if dollar weakness resumes or if Warsh signals a dovish approach.
In the bigger picture, gold is still up about 8% year-to-date, while silver has seen a 16% increase since the start of the year. Investors may find opportunities on the dips, especially if geopolitical tensions ease and the Fed maintains a supportive stance towards growth and inflation.