Silver prices plunged 16%, their sharpest drop in history, and gold followed suit.
Precious metal prices experienced significant volatility amid continued market uncertainty and liquidity issues. Silver prices plummeted by over 16% in a single day as investors awaited developments on the Federal Reserve's policy direction.
On February 5, 2026, at 7:08 AM, Bloomberg News reported that: Silver prices fell sharply on Thursday, erasing two days of recovery. The market has failed to find a new bottom following its historic drop, while the price of gold has also fallen.
The spot price of silver. Gold prices plunged as much as 16.6% during the day, despite initially rebounding above $90 per ounce in the early Asian time period. Spot gold prices also fell by as much as 3.5% amid volatile trading.
Christopher Wong, a strategist from Oversea-Chinese Banking Corp Ltd. It was noted that the overall investment sentiment in most asset classes, including regional stocks and precious metals, has begun to weaken significantly, reflecting the fragility of confidence and creating a cycle of selling pressure amidst relatively thin market liquidity.
Previously, gold and precious metal prices surged throughout the past month driven by speculation, geopolitical tensions, and concerns about the independence of the U.S. Federal Reserve. However, this trend came to a sudden halt late last week, with silver prices experiencing their sharpest daily drop on Friday, while gold prices plunged to their lowest point since 2556.
The market is still assessing the policy impact of Kevin Warsh's nomination as the new Federal Reserve chairman. Donald Trump stated that if Warsh had supported interest rate hikes, he would not have nominated him, while also emphasizing that there is virtually no doubt the Fed will cut interest rates again. This is a supporting factor for precious metals that do not yield interest payments.
Analysts from Standard Chartered Plc, led by Sudakshina Annikrishnan. specify that Price volatility is likely to continue until there is more clarity on the direction of monetary policy. Short-term volatility is partly due to investor redemptions from ETFs, but the structural factors supporting the precious metals market remain unchanged, and prices are expected to recover in the coming period.
At 1:59 PM Singapore time. Silver price It fell 12.7% to $76.9495 per ounce, while Spot gold price It fell 2.1% to $4,859.20 per ounce. Platinum and palladium It also adjusted downwards. Bloomberg Dollar Spot Index Moved up 0.1%
refer : www.bloomberg.com
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