05.02.2026 07:40
The decrease in geopolitical tensions, the strengthening of the dollar, and record outflows from gold ETFs in China have led to a sharp decline in gold and silver; with losses in silver approaching 14%, prices have significantly fallen below recent peaks.
The fluctuations in gold and silver prices in global markets continue. Precious metals, which have experienced sharp increases due to rising geopolitical risks recently, have entered a rapid pullback process after reaching record levels.
The U.S. moves towards Venezuela, its insistence on Greenland, and its continued threats against Iran have increased the demand for safe havens in the markets. During this process, with the U.S. Federal Reserve (FED) keeping interest rates steady, gold and silver prices tested historical peaks, with gold reaching $5,600 per ounce and silver rising to $120 per ounce.
SHARP DECLINE AFTER SHARP RISE
Although prices quickly retreated after record levels and experienced a short-term recovery, they fell again tonight. The loss of value in silver, in particular, drew attention. The decline in silver prices approached 14%, with the ounce price dropping to $88. The ounce price of gold closed the day at $4,965.
CURRENT PRICES
As of 07:15, the ounce price of gold is trading at $4,875, while the ounce price of silver is at $76. Gram gold is priced at 6,808 TL, and gram silver at 107 TL. In the Grand Bazaar, physical gram gold is found at 7,424 TL.
U.S. AND CHINA DIALOGUE HAS BEEN EFFECTIVE
The easing diplomatic contacts between the U.S. and China are considered to have influenced the pullback in gold prices. U.S. President Donald Trump announced that he had a "perfect phone call" with Chinese President Xi Jinping, while it was noted that the Chinese side emphasized strong communication in relations. This development limited the demand for safe havens in the markets.
DECLINE IN U.S.-IRAN TENSION
The planned negotiations between the U.S. and Iran also created pressure on prices. Iran announced that the talks would take place in Oman on Friday, and the U.S. side confirmed this information. The expectation of reduced tension accelerated sales in gold and silver.
DOLLAR INDEX RISING
On the other hand, the dollar index tested the level of 97.80, reaching its highest level in the last two weeks. With the emergence of Kevin Warsh, a hawkish figure for the FED presidency, the strengthening trend of the dollar increased. The rise of the dollar raised the cost of holding precious metals, strengthening the selling pressure on gold and silver.
U.S. DATA AND EMPLOYMENT EXPECTATIONS
The U.S. Services Purchasing Managers' Index for January was announced at 53.8, above the expectation of 53.5. While the data indicates vitality in the economy, it has led to a weakening of lower interest rate expectations. Markets are focused on the non-farm employment data to be announced tomorrow.
RECORD OUTFLOW FROM GOLD FUNDS IN CHINA
The ETF data from China also played a role in the decline in gold prices. A total outflow of $980 million was experienced from China's four largest gold-backed ETFs on Tuesday. This figure was recorded as the largest daily outflow in history. On Monday, there was also an outflow of $317 million, bringing the total amount withdrawn from gold ETFs in China to nearly $1.3 billion in the first half of the week.