Gold and Silver Prices Crash After Soaring to New Heights — What Went Wrong?

Jakarta, Pintu News – Gold and silver experienced sharply deeper declines on Monday (2/2/26), continuing Friday’s historic plunge that wiped out trillions in market value. Price rises that were previously considered a safe haven quickly turned into a sharp correction, driven by a strengthening US dollar, massive profit-taking, and rising margin pressure.

Analysts state that the speed and magnitude of this movement indicates that speculative positioning has reached unsustainable levels.

Current Gold and Silver Prices

Spot gold prices fell about 5% to $4,616.79 (IDR 77.48 million) per ounce, following a nearly 10% drop on Friday when the price plunged below $5,000 (IDR 83.90 million). Silver suffered a much worse fate.

Read also: Gold, Silver, or Bitcoin: Which Will Lead by the End of the First Quarter of 2026?

After falling nearly 30% in a single session last week – its worst daily performance since March 1980 – the metal extended its slide, shedding more than 12% before stabilizing at around $78.30 (Rp1.31 million) per ounce.

Trillions of Dollars Vaporized in Days

Crypto analyst Bull Theory called this turmoil a “historical crash” instead of a normal correction. According to him, nearly $10 trillion in the combined market value of gold and silver vanished in just three days. Gold alone is estimated to be down about 20% from its peak, wiping out about $7.4 trillion in value – an amount equivalent to five times the total market capitalization of Bitcoin.

Silver’s fall is even more extreme. Analysts note the metal has fallen nearly 40% from its high, wiping out around $2.7 trillion in market value – a figure comparable to the entire crypto market.

Analysts warn that assets that were once considered safe havens are now showing volatility like the crypto coin meme, reflecting how crowded and leveraged the trading positions are.

What triggered the massive sell-off?

One of the main triggers was the re-strengthening of the US dollar. The dollar index is up about 0.8% since Thursday, making gold and silver priced in dollars more expensive for international buyers. At the same time, expectations of tighter monetary policy increase the opportunity cost of holding non-yielding assets like gold.

Read also: Gold Price Today, February 2, 2026: Up or Down?

Markets were also rattled after President Donald Trump nominated former Federal Reserve Governor, Kevin Warsh, to replace Jerome Powell as Fed Chair when his term ends next May. Warsh is known as a proponent of tight monetary policy, which promotes dollar strength and suppresses interest in interest rate-sensitive assets.

In response to the volatility that occurred, CME Group immediately raised the margin requirements in effect after Monday’s market close. The margin for the gold futures contract on COMEX rose from 6% to 8%, while the margin for the 5,000-ounce silver contract rose from 11% to 15%.

Analysts Keep an Eye on Crypto Linkages

Crypto analyst Michaël van de Poppe highlighted the sharp correction in silver that plummeted more than 40% in just two days. He called the move a“massive massacre” and noted that Bitcoin (BTC) had already taken a hit over the weekend, although it is starting to stabilize as the commodity becomes the main target of the sell-off.

Van de Poppe emphasized a pattern that often emerges in the market: when commodities fall sharply, cryptocurrencies often follow suit. However, he also noted that once commodities hit bottom, digital assets have historically tended to recover and outperform.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying and selling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• Coinpedia. Why Gold and Silver Fell Dramatically and How Bitcoin Reacted. Accessed on February 2, 2026