Precious Metals Plummet: Silver -15.3%, Gold -3.2% on Policy Uncertainty (2/5/2026)

Silver tumbled as much as 15.3% on Thursday, erasing a two-day recovery, while spot gold dropped 3.2% amid escalating uncertainty over U.S. monetary policy. The metals retreated from a rally that surged last month on speculative momentum, geopolitical volatility, and expectations of accommodative Fed policy. The abrupt reversal followed a week of declines, with silver posting its largest single-day drop on record on Friday and gold its biggest since 2013. Analysis suggests some volatility reflects redemption from exchange-traded products, but structural drivers for a potential upside recovery remain intact. Spot gold closed at $4,839.45 and silver at $75.8875 as of 10:58 a.m. Singapore time on February 5, 2026.