Gold is back above $4900 an ounce, rebounding as global equities fell and U.S.-Iran tensions continue. Meanwhile, silver fell early Friday, headed for a weekly loss, after CME Group raised the margin requirement for both futures contracts to address volatility in the markets following silver’s Thursday tumble.
Silver swung between gains and losses early Friday after sliding 9.1% in trading Thursday. The white metal hit a record above $115 an ounce just last week but is now trading in the mid-$70 range. Precious metals sourced last month because of geopolitical and economic risks, concerns about the Federal Reserve’s independence and speculative buying out of China.
The increase in the margin requirement means that investors will have to provide more collateral to trade on the exchange, reducing their available cash flow to invest. It’s a risk management tool that exchanges sometimes employ during periods of high volatility. Increasing the margin requirement is typically bearish news because some investors may also have to liquidate some positions to meet the new requirements.
April gold futures fell 1.2% Thursday to settle at $4,889.50 an ounce on Comex, though the front-month contract is up 3% so far this week. Bullion surged 9.3% in January after rising 2% in December and gaining 6.5% in November. It rallied 64% last year. The April contract is currently up $76.50 (+1.56%) an ounce to $4966.00 and the DG spot price is $4951.50.
March silver futures tumbled 9.1% Thursday to settle at $76.71 an ounce on Comex, and the front-month contract lost 2.3% in the first four days of the week. It touched a record above $115 last week. Silver gained 11% in January after climbing 24% in December and increasing 19% in November. It rose 141% last year. The March contract is currently down $0.984 (-1.28%) an ounce to $75.730 and the DG spot price is $76.78.
Chinese buying sharply declined this week, Bloomberg reported. The agency also reported that a billionaire Chinese trader named Bian Ximing has built the largest net short position in silver on the Shanghai Futures Exchange.
Trading in Asia is likely to be light heading into the Lunar New Year later this month.
In economic news, the U.S. Bureau of Labor Statistics January 2026 jobs report, originally scheduled for release today, has been delayed until February 11, 2026, due to a partial government shutdown. The report is closely watched by investors concerned about the state of the economy and looking for signs on the Federal Reserves next moves on monetary policy.
The private payrolls report for January from ADP on Wednesday came in far short of expectations, showing that companies added just 22,000 jobs. The Fed has said it follows inflation and the labor market when setting interest rates.
The Fed last week kept benchmark interest rates unchanged at 3.50% to 3.75% after reducing rates at the previous three policy meetings. The central bank began raising interest rates in March 2022 to fight inflation, ultimately imposing increases of by 5.25 percentage points before beginning rate cuts in 2024.
More than 81% of investors are betting that the Fed will keep interest rates unchanged again in March, according to figures tracked by the CME FedWatch Tool. About 23% expect another 25 basis point cut. The Fed reduced interest rates for a third consecutive time in December to 3.50% to 3.75%.
The selloff in precious metals began at the end of last week when President Donald Trump said he would appoint inflation hawk Kevin Warsh as the next Fed chairman, succeeding Jerome Powell, whose term ends in May. Precious metals had, however, reached a series of record highs in recent weeks and were widely seen as overbought. Powell and Trump have long been at loggerheads over the president’s call for lower interest rates.
Spot palladium decreased 4.2% Thursday to $1,697.00 an ounce and gained 2.6% so far this week. Palladium rose 2.4% in January after increasing 11% in December and adding 0.5% in November. Palladium gained 74% last year. Currently, the DG spot price is up $22.80 an ounce to $1742.00.
Spot platinum declined 7% Thursday to $2,073.90 an ounce, but increased 0.8% so far this week. It gained 1.4% in January after surging 22% in December and climbing 4.7% in November. Platinum increased 122% in 2025. The DG spot price is currenlty up $4.10 an ounce to $2097.10.
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