Precious Metals Market Update: 2/2/2026

The precious metals complex began the new trading month on unstable footing, extending the sharp correction that began late last week. On Monday, February 2nd, 2026, sellers remained in control of the monetary metals, driving Gold down another 4.5% to settle near $4,671. The continued liquidation pressure suggests that the market is still digesting the rapid volatility from January's end, with technical damage forcing further unwinding of long positions.

Silver also faced significant headwinds, dropping over 5% to test the $80.00 support level. The white metal has struggled to find a floor following its precipitous drop from last week's highs. Platinum followed the broader bearish trend, shedding nearly 2.7%. However, Palladium decoupled from the group, posting a gain of nearly 2%. This divergence suggests that while speculative money is fleeing gold and silver, value-seeking investors and industrial buyers may be stepping in to accumulate palladium after its recent plunge.

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Key Drivers:

• Technical Follow-Through Selling: The primary driver for Monday’s decline in gold bars and silver was technical follow-through from Friday's crash. With major support levels breached late last week, automated trading systems and momentum funds continued to press the short side. The inability of gold to reclaim the $4,800 level early in the session invited fresh selling, pushing prices toward the next technical support zones.

• Palladium Short Covering: In a notable divergence, palladium rallied 1.9% despite the broader market weakness. Analysts attribute this to "short covering" and bargain hunting. After falling significantly in previous sessions, the metal became deeply oversold, prompting speculative shorts to buy back contracts to realize profits. Additionally, industrial users likely utilized the lower prices to hedge future requirements, providing a natural bid for the metal.

• Dollar Strength & Risk Sentiment: A stabilizing U.S. dollar and a slight recovery in risk sentiment weighed on the safe-haven appeal of gold coins. As equity markets attempted to find their footing after last week's tech-led volatility, capital rotated out of defensive assets. The reduced urgency for safe-haven protection allowed the premium in precious metals to deflate further.

Looking Ahead:

Market participants are focused on where the metals will find a sustainable floor after this rapid repricing event.

• Support Level Tests: Traders will be watching closely to see if silver can hold the psychological $80.00 level. A break below this area could open the door to further technical selling, while a defense of this zone might signal that the worst of the liquidation is over.

• Economic Data: Investors will turn their attention to upcoming ISM Services data and other mid-week economic reports. Any signs of economic resilience could bolster the case for the Federal Reserve to hold rates steady, potentially keeping pressure on non-yielding assets like platinum and gold.

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