Silver prices crash 16% amid extreme market volatility
05 Feb 2026

Silver prices have witnessed a dramatic fall, plummeting by as much as 16%.

The white metal has now fallen below the $75 per ounce mark, reversing all gains made over the last two trading sessions.

Silver prices had closed above $90 per ounce on Wednesday, but after an initial fall, they are now witnessing extreme price swings.

Gold prices have also come under pressure, slipping below $2,000 per ounce amid extreme market volatility.

Volatility largely attributed to a rebound in the US dollar
Market fluctuations

The recent volatility in precious metals is largely attributed to a rebound in the US dollar.

The US dollar index is currently trading near 98, having hit four-year lows at the end of January.

The nomination of Kevin Warsh as the new Federal Reserve Chair has also triggered a sharp sell-off in precious metals over the weekend and on Monday.

Although Warsh has recently voiced support for some rate cuts, he is historically viewed as a "monetary hawk."

Market experts weigh in on precious metals' volatility
Expert predictions

Christopher Wong, a strategist at Oversea-Chinese Banking Corp Ltd, observed that "sentiment seems to have turned soggy across most asset classes, including regional equities and metals."

He said this has created "a feedback loop amid thin market liquidity."

Despite the current downturn, Standard Chartered Plc analysts, including Sudakshina Unnikrishnan, predict price action will remain volatile until there's greater certainty on monetary policy outlook.