Gold Price Today slides again as margin hikes and a stronger dollar keep pressure on bullion

Gold prices were lower in early Tuesday trading, extending a violent pullback that began after late-January record highs. The selloff has been driven less by a sudden change in physical demand and more by market mechanics: leveraged positions being reduced as margin requirements rise, alongside a shift in expectations for U.S. interest rates that has lifted the dollar and cooled appetite for non-yielding assets.

Gold’s retreat has also been amplified by big intraday swings in silver, which has seen even sharper percentage moves. With volatility still elevated, traders are watching whether the market can form a base after multiple sessions of forced deleveraging.

Gold price today in USD

In early trading Tuesday (Feb. 3, ET), spot gold hovered around the mid-$4,600s per ounce after swinging widely the day before. Futures prices were also lower on the front months, reflecting continued risk reduction across precious-metals contracts.

Why gold is falling

Two forces are doing most of the work:

First, higher margin requirements on precious-metals futures are forcing some traders to post more collateral or reduce exposure. When margins rise quickly after a sharp move, the market can see “forced selling” as participants cut positions to meet capital needs. This dynamic can push prices lower even if longer-term investors still like the macro case for gold.

Second, the U.S. dollar has strengthened as markets reassess the likely path of monetary policy. Gold often struggles when the dollar rises because it becomes more expensive for non-U.S. buyers, and because higher expected interest rates increase the appeal of yield-bearing alternatives.

Together, those drivers have created a tough backdrop for bullion: tighter financial conditions, less tolerance for leverage, and fewer incremental buyers willing to step in while price action remains unstable.

A sharp reversal from record highs

The speed of the decline has been the story. Gold set a record high near $5,594.82 in late January, then reversed hard as positioning became crowded and volatility jumped. The subsequent drop erased a large portion of the month’s gains in just a few sessions.

This kind of drawdown is often self-reinforcing in the short run. Once key levels break, systematic strategies can reduce exposure, discretionary traders can hit stop-losses, and liquidations can cascade—especially during thinner liquidity windows.

The result is a market that can feel disorderly even if the longer-term narrative (diversification demand, central-bank buying, inflation hedging) is still intact.

What margin changes mean in practice

Margin hikes matter because they change the cost of holding a futures position. Even a relatively small percentage increase can translate into a meaningful dollar amount per contract, especially at elevated price levels. When traders have multiple positions across metals (gold, silver, platinum, palladium), a margin hike in one contract can force selling in others to raise cash—spreading stress across the complex.

That helps explain why silver’s plunge has mattered for gold: silver’s bigger percentage swings can tighten risk limits and accelerate de-risking across related markets.

What to watch next

The next question is whether selling pressure fades now that the market has begun adjusting to higher margin requirements. If forced liquidations diminish, gold can stabilize quickly, but volatility typically remains elevated until positioning resets and liquidity improves.

Traders are also watching:

• whether the dollar continues to firm or pauses,

• whether bond yields settle after the recent repricing,

• whether physical demand shows up more clearly at lower levels,

• and whether intraday ranges narrow (a common early sign that liquidation is easing).

In the near term, “gold price today” is likely to remain headline-sensitive and flow-driven. The market’s direction will depend less on abstract narratives and more on observable mechanics: collateral, leverage, and how quickly buyers return once the selling becomes less forced.

Sources consulted: CME Group market data; Reuters; Trading Economics; MarketWatch