economy
February 3, 2026
Gold and silver extend slide after record-breaking rally
Gold and silver extended losses on Monday after a sharp reversal of a rally that had pushed both metals to record highs
TL;DR
- Gold prices fell 8% to $4,465 an ounce on Monday, following a sharp reversal from record highs.
- Silver dropped 7% after a 30% slide on Friday.
- The sell-off was influenced by US President Donald Trump's potential nomination for Federal Reserve Chairman and calming fears of aggressive monetary policy.
- Speculative buying from China was also cited as a driver of the earlier surge and subsequent collapse.
- The rally generated significant gains for Russia, potentially comparable to its frozen sovereign assets.
- Analysts at Deutsche Bank still expect gold to reach $6,000 later this year.
- Jefferies analyst Mohit Kumar described the sell-off as an 'unwind' of a 'crowded' trade, suggesting weaker hands have exited the market.
- Precious metals surged in 2025, with gold achieving its largest annual gain since 1979.
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