Precious Metals Market Update: 2/12/2026

Precious metals markets faced a wave of liquidation on Thursday, February 12th, 2026, as a convergence of technical selling and liquidity stress drove prices sharply lower. The bullish momentum from earlier in the week evaporated, replaced by aggressive selling pressure that spared no corner of the complex. Silver bore the brunt of the rout, crashing nearly 10% to surrender the $80.00 handle and close below $76.00. The magnitude of the move suggests a "rush for the exits" by speculative funds, likely exacerbated by margin calls in other asset classes, forcing the sale of liquid holdings.

Gold also succumbed to the bearish sentiment, shedding approximately 3% to lose the psychologically critical $5,000 level. The yellow metal's reversal wipes out the gains from the post-CPI rally, damaging the short-term technical picture. Industrial metals followed the downward trajectory, with Platinum diving over 5% to test support near $2,000 and Palladium dropping nearly 4%. The synchronized decline across precious metals, distinct from typical safe-haven behavior, points to a systemic deleveraging event where investors prioritized raising cash over holding hard assets.

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Key Drivers:

• Systemic Liquidity & Margin Calls: A primary driver of today's crash was a broad-based liquidity crunch. Reports indicate that sharp corrections in correlative markets, including cryptocurrencies, triggered cross-asset margin calls. To meet these collateral requirements, hedge funds and institutional traders were forced to liquidate their most liquid profitable positions, leading to indiscriminate selling of gold bars and silver regardless of the fundamental backdrop.

• Technical Breakdown & Algorithmic Selling: The selling pressure accelerated as key technical levels were breached. Once gold failed to hold the $5,000 support and silver coins broke below $80, Commodity Trading Advisors (CTAs) and algorithmic trading models flipped to a "sell" bias. This automated selling exacerbated the decline, creating a vacuum of buyers and pushing prices vertically lower in a short period.

• Shift in Fed Expectations: Despite yesterday's soft CPI print, sentiment shifted following news regarding potential future Federal Reserve leadership. Speculation regarding the nomination of a more hawkish Fed Chair, known for favoring a stronger dollar and tighter balance sheet policies, rattled markets. This "Warsh Shock" narrative caused traders to reassess the durability of the "debasement trade," prompting profit-taking in platinum and gold as yields firmed up.

Looking Ahead:

The market enters the end of the week in a fragile state, with investors looking for stabilization after the violent repricing.

• Support Level Defense: Traders will be watching closely to see if gold can defend the $4,900 level and if silver can hold above $75.00 into the weekly close. A failure to stabilize here could invite further technical selling targeting the January lows.

• PPI Inflation Data: Friday’s Producer Price Index (PPI) report now carries added weight. After today's volatility, a hot wholesale inflation number could add further pressure to the complex, while a soft print might provide the respite needed for buyers to step back in.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Market data and prices are subject to change.