Gold and silver prices declined amid volatile trading.
2026-02-03 01:22:53
Gold and silver prices fell in the midday trading session on Monday (February 2), hovering in the middle of the day's wide trading range. This followed the two precious metals hitting four-week lows overnight and experiencing record trading activity on Friday. Gold futures for April delivery were last quoted at $4,727.8 per ounce, down $17.3; silver futures for March delivery were at $79.56 per ounce, up $1.029.
The rebound in US stock indices and the US dollar index, coupled with a sharp drop in crude oil futures prices, became unfavorable external market factors for precious metal bulls on the first trading day of this week and month.
Overnight, March silver futures touched a low of $71.20 per ounce, after hitting a record high of $121.785 per ounce last Thursday; April gold futures touched a low of $4423.20 per ounce overnight, after reaching a record high of $4626.80 per ounce last Thursday.
The CME Group raised margin requirements for both metal futures contracts again over the weekend.
The pressure on metals was partly due to President Trump's nomination of Kevin Warsh as Federal Reserve chairman last Friday, which boosted the dollar index. Warsh is generally considered to hold a more hawkish stance on the Fed's monetary policy.
Some believe that last Friday's gold and silver market crash stemmed from Chinese speculators establishing large leveraged long positions in futures and options—they may not have fully understood the potential risks associated with high leverage. Bloomberg reported that Chinese metal traders suffered losses of at least 1 billion yuan due to a counterparty absconding, preventing the transaction from being completed.
Another key external market development today shows that the yield on the 10-year U.S. Treasury note is currently at 4.22%.
From a technical perspective, last week's price action in April gold futures formed a large bearish "key reversal" pattern on the daily chart, one of the chart signals suggesting the market may have topped out. The next upside target for the bulls is to push the futures closing price above the strong resistance level of $5,000.00; the near-term downside target for the bears is to push the futures price below the solid technical support level of $4,250.00. The first resistance level is seen at today's high of $4,905.60, followed by $5,000.00; the first support level is at $4,600.00, with subsequent support at $4,500.00.
(COMEX silver daily chart source: FX678)
Bullish momentum in March silver futures is waning. The next upside target for bulls is to push the closing price above the strong technical resistance level of $100.00; the next downside target for bears is to push the closing price below the solid support level of $70.00. First resistance is seen at the overnight high of $88.00, followed by $90.00; subsequent support is at $75.00, and then at the overnight low of $71.20.
Note: The gold market operates primarily through two pricing mechanisms. The first is the spot market, which quotes prices for immediate purchase and delivery; the second is the futures market, which determines the price for delivery on a future date. Due to year-end position adjustments and market liquidity, the most actively traded contract on the Chicago Mercantile Exchange (CME) is currently the December gold futures contract.
The rebound in US stock indices and the US dollar index, coupled with a sharp drop in crude oil futures prices, became unfavorable external market factors for precious metal bulls on the first trading day of this week and month.
Overnight, March silver futures touched a low of $71.20 per ounce, after hitting a record high of $121.785 per ounce last Thursday; April gold futures touched a low of $4423.20 per ounce overnight, after reaching a record high of $4626.80 per ounce last Thursday.
The CME Group raised margin requirements for both metal futures contracts again over the weekend.
The pressure on metals was partly due to President Trump's nomination of Kevin Warsh as Federal Reserve chairman last Friday, which boosted the dollar index. Warsh is generally considered to hold a more hawkish stance on the Fed's monetary policy.
Some believe that last Friday's gold and silver market crash stemmed from Chinese speculators establishing large leveraged long positions in futures and options—they may not have fully understood the potential risks associated with high leverage. Bloomberg reported that Chinese metal traders suffered losses of at least 1 billion yuan due to a counterparty absconding, preventing the transaction from being completed.
Another key external market development today shows that the yield on the 10-year U.S. Treasury note is currently at 4.22%.
From a technical perspective, last week's price action in April gold futures formed a large bearish "key reversal" pattern on the daily chart, one of the chart signals suggesting the market may have topped out. The next upside target for the bulls is to push the futures closing price above the strong resistance level of $5,000.00; the near-term downside target for the bears is to push the futures price below the solid technical support level of $4,250.00. The first resistance level is seen at today's high of $4,905.60, followed by $5,000.00; the first support level is at $4,600.00, with subsequent support at $4,500.00.
(COMEX silver daily chart source: FX678)
Bullish momentum in March silver futures is waning. The next upside target for bulls is to push the closing price above the strong technical resistance level of $100.00; the next downside target for bears is to push the closing price below the solid support level of $70.00. First resistance is seen at the overnight high of $88.00, followed by $90.00; subsequent support is at $75.00, and then at the overnight low of $71.20.
Note: The gold market operates primarily through two pricing mechanisms. The first is the spot market, which quotes prices for immediate purchase and delivery; the second is the futures market, which determines the price for delivery on a future date. Due to year-end position adjustments and market liquidity, the most actively traded contract on the Chicago Mercantile Exchange (CME) is currently the December gold futures contract.
- Risk Warning and Disclaimer
- The market involves risk, and trading may not be suitable for all investors. This article is for reference only and does not constitute personal investment advice, nor does it take into account certain users’ specific investment objectives, financial situation, or other needs. Any investment decisions made based on this information are at your own risk.
