Price of Gold Today 1 Feb 2026: Gold Price Slides to Around $4,890 an Ounce as Volatility Spikes

Gold prices are sharply lower today, with spot gold trading around $4,890 per troy ounce on February 1, 2026 (ET). The move caps a turbulent stretch in which gold recently surged to fresh highs and then reversed hard, leaving investors focused on whether this selloff is a temporary washout or the start of a deeper reset in precious metals.

The latest readings show gold down by roughly $500 per ounce on the day, about 9%, with wide intraday swings that signal unusually intense two-way trading. In plain terms: gold is still expensive by historical standards, but the market is no longer moving in a steady uptrend—price is now being driven by liquidity, leverage, and risk controls as much as by long-term fundamentals.

Gold Price Today Snapshot (ET)

Because different venues update at slightly different times, the numbers below should be treated as a near-real-time snapshot rather than a single official print.

• Spot gold (per ounce): about $4,889

• Spot gold (per gram): about $157

• Spot gold (per kilo): about $157,200

• Intraday range (spot): roughly $4,692 to $5,452

• Front-month gold futures: roughly $4,714

That spread between spot and futures, along with the huge intraday range, is a clue to what’s happening behind the scenes: traders are repricing risk quickly, and some positions are likely being reduced under pressure.

What Happened: Why Gold Prices Dropped So Fast

A one-day drop of this magnitude is rarely about a single headline. It usually reflects a chain reaction:

1. Crowded positioning unwinds. After a strong run, many investors hold similar “safe-haven” or momentum positions. When price breaks key levels, the exits get busy at once.

2. Margin pressure accelerates selling. Leveraged traders must post more collateral when volatility rises or when exchanges raise margin requirements. That can force liquidation even if the investor still likes gold long term.

3. Volatility becomes the story. Once the market starts swinging hundreds of dollars in a session, risk managers often reduce exposure automatically, which can amplify the move.

The result is the classic “air pocket” pattern: rapid declines, thin liquidity at certain price levels, and sharp rebounds that fade as sellers reappear.

Behind the Headline: Incentives and Stakeholders Driving the Move

Gold isn’t just a “fear trade.” It’s also a massive, highly financialized market with many participants who behave differently under stress.

Incentives

• Funds and traders are incentivized to cut risk when volatility spikes, regardless of their macro view.

• Market makers widen spreads to protect themselves, which can worsen price gaps.

• Short-term speculators may press the move once downside momentum is established.

Stakeholders

• Retail investors feel the move immediately, especially those who bought near recent highs.

• Jewelry and industrial buyers may see opportunity if prices stabilize, but they tend to wait for calmer conditions.

• Central banks and long-term allocators care less about a single day and more about whether the broader uptrend remains intact.

• Miners and streaming companies watch both price and volatility, since financing conditions and hedging costs can change quickly.

What We Still Don’t Know: The Missing Pieces

Several key questions remain unresolved and will determine whether gold finds a floor soon:

• How much of the selling was forced? If margin-driven liquidation dominated, the move can burn out quickly once weaker hands are cleared.

• Where are the true support levels? A market can trade through multiple “obvious” supports during a volatility event.

• Is demand stepping in quietly? Physical buying and longer-term accumulation often lag the initial plunge.

• Are policy and rates expectations shifting again? Gold is sensitive to real yields, currency moves, and expectations for central-bank policy—any surprise can flip sentiment fast.

What Happens Next: 5 Realistic Scenarios to Watch

1. Stabilization and range trading

   • Trigger: gold holds the mid-to-high $4,000s for multiple sessions and intraday swings shrink.

2. Relief bounce

   • Trigger: forced selling fades and short-covering pushes spot back above nearby resistance zones.

3. Another leg lower

   • Trigger: renewed margin tightening, a fresh risk-off shock, or a break below recent session lows.

4. Volatility persists, direction unclear

   • Trigger: macro uncertainty stays elevated and traders keep exposure light, causing whipsaws.

5. Re-acceleration higher later

   • Trigger: sustained currency weakness, renewed geopolitical stress, or strong institutional demand returns after volatility cools.

Why It Matters Beyond Gold

Moves like this spill into the broader financial system. Elevated volatility can ripple into:

• Silver and other precious metals, which often move even more aggressively

• Inflation hedging narratives, as investors reassess what “protection” means in fast markets

• Portfolio risk controls, leading to reduced exposure across commodities and other volatile assets

For anyone watching gold prices today, the key isn’t only the last traded price—it’s whether volatility compresses and whether buyers show up consistently without needing a dramatic dip to do so.