Gold price today under pressure as speculators retreat; silver’s sharp drop underscores fresh volatility across metals

Gold prices fell Thursday as the latest rebound attempt fizzled and traders continued to unwind crowded bullish positions built during a record-setting run. Silver dropped far more sharply, underscoring how quickly sentiment has swung across precious metals after a historic selloff late last week and a brief, uneven recovery into midweek.

By late morning on Thursday, February 5, 2026 (ET), the move looked less like a single headline shock and more like a broad risk reset: a firmer U.S. dollar, easing near-term geopolitical anxiety, and stricter trading conditions have combined to push fast-money participants to the sidelines.

Where prices stand today

As of about 11:30 a.m. ET, the complex was broadly lower:

Silver briefly traded near $73 in the session before stabilizing above that low, a reminder that thin liquidity and leveraged positioning can exaggerate intraday swings.

Speculators retreat after the run got crowded

A major theme behind Thursday’s pressure is positioning. Recent futures data show a clear cooling in speculative exposure: money managers cut net-long positions in gold by roughly 17,700 contracts in the latest weekly window, and silver net longs fell by about 4,000 contracts, marking a multi-week drawdown.

That matters because the rally into late January was not a quiet grind higher—it accelerated, inviting momentum strategies and leveraged traders. When prices reversed, the same crowd that pushed the market up became a source of selling on the way down. The result is a classic post-blowoff pattern: violent drops, sharp snapbacks, then another leg lower as traders test how much “real” demand is left once the fast money steps back.

Silver’s outsized fall shows how fragile the tape is

Silver’s drop is the headline because it is the metal most prone to sudden air pockets. It trades in a smaller, more volatile market than gold, and it can behave like a hybrid of precious and industrial exposure—meaning it tends to suffer most when traders de-risk broadly.

The magnitude of the decline also reflects how stretched silver had become. Prices recently topped $121/oz at a record peak, then retreated dramatically as profit-taking accelerated. Even after Thursday’s drop, the market remains far above levels that prevailed for much of the prior decade, which is why traders are debating whether this is a temporary cleansing of excess leverage—or the start of a deeper repricing.

The macro mix: dollar strength and a calmer risk backdrop

Gold and silver often struggle when the U.S. dollar strengthens, because it makes dollar-priced metals more expensive for non-U.S. buyers and can reduce near-term demand. Thursday’s move fit that playbook.

At the same time, part of the earlier rush into metals was tied to elevated fear and an “everything hedge” mentality. As the immediate geopolitical temperature cooled and markets began to reprice the odds of near-term shocks, the urgency to own large, leveraged metal positions faded. That doesn’t erase longer-term arguments for owning bullion, but it can weaken the short-term bid—especially after a rally that had already become crowded.

Margin, mechanics, and why moves are so abrupt

The recent volatility is also mechanical. When exchanges raise margin requirements or brokers tighten risk limits, traders using leverage must either post more collateral or reduce exposure. In a market that has just posted huge gains and then a sharp reversal, that can trigger forced selling and amplify downside moves.

This is why the tape can look “irrational” for stretches: selling isn’t always a fresh macro view—it can be risk control, profit protection, or simple liquidation. Once the pressure eases, prices may bounce quickly, but those rebounds can fail if they run into the next wave of position trimming.

What to watch next

Three signals will help clarify whether Thursday’s move is a stabilization step or another leg lower:

1. Positioning and flows: if speculative net longs keep falling, rallies may stay fragile.

2. The dollar and real yields: a persistent rise tends to cap upside for non-yielding assets.

3. Silver’s ability to hold key levels: repeated breaks to new session lows would suggest deleveraging isn’t done.

For now, the price action is delivering a blunt message: after record highs and a fast unwind, metals are trading less like a steady store of value and more like a volatility product—especially silver.

Sources consulted: Reuters, Bloomberg, ING, Morningstar