Gold Reclaims $5,000, Silver Surges Toward $90 as Precious Metals Stage Sharp Rebound After Crash!!!
Current Prices (as of February 4, 2026);
As of approximately on February 4, 2026, the spot price for gold stands at a bid of $5,052.00 per ounce and an ask of $5,054.00 per ounce in USD.$XAUT
This reflects a daily gain of +$106.20 (+2.15%), with the day's trading range spanning from a low of $4,910.90 to a high of $5,092.70.
For silver, the spot price is at a bid of $89.20 per ounce and an ask of $89.45 per ounce, marking a stronger daily increase of +$4.17 (+4.90%), with a range from $83.23 to $90.88.
These figures indicate a recovery mode for both metals following extreme volatility earlier in the week, with silver showing more pronounced upside momentum on a percentage basis.
Recent Trends and Volatility;
The precious metals market has been characterized by unprecedented turbulence in early February 2026, marking one of the most volatile periods in recent history. Gold prices surged to an all-time high near $5,608 per ounce on January 29 (last Thursday before the crash), only to plummet over 21% to a low of around $4,400 by February 2 (Monday)
Similarly, silver hit a record spot high above $121 per ounce last week before crashing 41% to as low as $71.20.
Friday, January 30, saw gold drop 9% its worst day in over a decade while silver plunged 26-28%, the largest single-day loss in futures trading history.
By February 2 (Monday), losses extended, with gold dipping below $4,700 and silver near $76-79.
However, a rebound began on February 3 (Tuesday), with gold climbing over 6% to around $4,951 and silver surging 14-20% back above $87.
Today's (February 4) gains build on this, pushing gold above $5,000 for the first time since the crash and silver toward $90.
Overall, gold is up approximately 66-67% year-over-year, while silver has risen 147-158%, underscoring silver's outperformance despite the volatility.
This volatility rivals levels seen during the 2008 financial crisis for gold and 46-year highs for silver, driven by parabolic rallies in January gold averaged $4,744 (+10.6% month-on-month) and silver $92.13 (+43.2%).
Trading volumes and new investor inflows hit records, with platforms like BullionVault reporting $1 billion in gold and silver activity in January alone.
Factors Influencing Prices;
Several interconnected factors have fueled this rollercoaster:
Margin Hikes and Liquidations: The CME Group's increase in margin requirements for gold (to 8% from 6%) and silver (to 15% from 11%) effective February 2 triggered forced selling and margin calls, exacerbating the crash.
This, rather than policy news, is cited as the primary catalyst for the depth of the sell-off, leading to "unprecedented" liquidations in leveraged positions.
Fed Chair Nomination and Rate Expectations: President Trump's nomination of Kevin Warsh as Fed Chair on January 30 was initially blamed for the drop, as Warsh is perceived as hawkish, potentially reducing expectations for rate cuts.
However, analysts argue this was overstated, with the real driver being the margin adjustments amid overextended positions.
Uncertainty around the upcoming jobs report (possibly delayed by a government shutdown) adds to short-term volatility.
Profit-Taking and Asset Rotation: Significant profit-taking occurred after the January rally, with investors rotating into other assets like oil.
Fading risk appetite has since supported a rebound in safe-haven metals.
USD Strength and Broader Markets: A rebounding USD has capped upside, as precious metals are priced in dollars.
Demand Drivers: Central bank buying, ETF inflows, and diversification from U.S. assets continue to underpin long-term demand.
For silver, industrial demand (e.g in solar, electronics) and persistent supply deficits are key boosters.
Tokenized gold is gaining investor interest, signaling a shift from traditional "paper" assets.
Geopolitical and Economic Backdrop: Ongoing inflation hedging, monetary policy uncertainty, and political instability remain supportive.
In regions like Vietnam, the price drop triggered physical buying sprees.
Technical Analysis
Gold's rebound has tested resistance at $5,000, with next upside targets at $5,020-$5,090 and potential support at $4,700 if selling resumes.
Bears eye $4,600 or lower to $4,250 for a deeper correction.
The recent low at $4,418 aligned with a key buying zone ($4,300-$4,400), sparking the impulsive rally above $4,600.
Silver shows stronger relative strength, with upside potential to $90-$91 this week.
The gold-silver ratio remains bearish (favoring silver's outperformance), unlikely to reverse without a weekly close signaling a shift.
Volatility is a "defining feature" of the current bull market, with mining stocks lagging the metals' recovery.
Fundamental Outlook and Comparison;
Gold remains the classic safe-haven, benefiting from central bank reserves and investor diversification, but its rally is more tied to monetary policy and geopolitics.
Silver, often called "gold on steroids," amplifies movements due to its dual role as an industrial metal (50%+ of demand) and investment asset, leading to greater volatility and potential outperformance in 2026 if supply deficits persist and industrial recovery strengthens.
The recent crash has created "buying opportunities," with dips to $4,500-$4,650 for gold likely to attract renewed demand.
Long-term, the backdrop is bullish: JPMorgan forecasts gold at $6,300 by year-end, driven by real-asset outperformance.
Silver could continue outpacing gold if industrial factors align, though both face risks from USD strength and policy shifts.
Investors should monitor premiums on physical bullion, which have spiked amid the volatility.
For those holding jewelry or considering sales, current prices remain elevated year-over-year, but timing amid swings is crucial.