Gold and Silver prices volatile - 5th February 2026

Gold and silver prices dropped sharply at the end of last week, following a period of historic highs with gold experiencing a partial recovery mid week to then decline again today. Gold and other precious metals are seen by many investors as a safe haven to store wealth when economic times are unstable.

Prices saw extreme volatility after financial markets reacted to the nomination of Kevin Warsh as the next US Federal Reserve chair, triggering safe-haven sell-offs and contributing to a metals market meltdown. 

Despite the drop, some longer-term outlooks remain relatively bullish on gold, with major banks like JP Morgan still forecasting higher prices later in 2026, though silver’s path looks more uncertain. 

The FTSE 100 index hit record highs on Wednesday this week, in part reflecting a rotation out of safe-haven assets (like gold and silver) towards equities. Investors are watching global macro developments closely (Fed policy expectations, dollar strength, trade tensions), which have been major drivers of the recent swings. 

What’s driving the moves

The sell-offs and price swings this week are largely attributed to:

• Monetary policy expectations - A perceived more hawkish future Fed leadership tends to strengthen the US dollar and reduce appeal of non-yielding assets like gold and silver. 

• Risk-on markets - UK and global equity gains suggest traders are rotating out of safe havens. 

• Volatility in commodity markets overall, affecting metals beyond just gold and silver.