Gold Retreats in Asia as Silver Suffers Sharp Selloff on Dollar Strength

Gold prices reversed earlier gains and moved lower in Asian trading on Thursday, while silver plunged sharply, erasing much of its brief rebound earlier this week as renewed pressure returned to metal markets.

Spot gold slipped 1.3% to $4,899.18 an ounce by early Asian hours, while April gold futures fell 0.6% to $4,919.49. The pullback came as the U.S. dollar strengthened ahead of key interest rate decisions in Europe, weighing broadly on precious metals.

Silver Slides Deeply After Brief Recovery

Silver was the weakest performer, tumbling as much as 16% to $73.56 an ounce, with futures posting similar losses. The selloff began in Asian trading, particularly in Chinese markets, where sharp declines in Shanghai silver futures spilled over into global prices.

The drop effectively wiped out silver’s recent rebound and brought prices back toward last week’s lows. According to OCBC FX strategist Christopher Wong, while positioning in precious metals has partly reset after recent volatility, confidence has yet to fully return, raising the risk of choppy, two-way trading in the near term.

Despite the steep losses, Wong noted that silver’s underlying fundamentals remain intact, supported by its dual role as both a precious and industrial metal.

Broader Metals Also Under Pressure

The selloff extended across the metals complex. Spot platinum fell 6.8% to $2,089.85 an ounce, while benchmark copper futures on the London Metal Exchange eased 0.8% to $12,950 per tonne, reflecting broader risk aversion.

Dollar Strength Weighs Ahead of Central Bank Decisions

Metal prices were pressured by a firmer U.S. dollar as investors positioned ahead of interest rate decisions from the Bank of England and the European Central Bank later on Thursday. The greenback also found support ahead of delayed U.S. nonfarm payrolls data, now scheduled for February 11 due to the recent partial government shutdown.

The dollar’s recent strength has been reinforced since President Donald Trump nominated Kevin Warsh as the next Federal Reserve chairman. Warsh is widely viewed as less dovish, raising expectations that monetary policy could remain relatively tight even if rate cuts materialize.

Together, these factors have kept pressure on precious metals, limiting the scope for a sustained recovery despite recent price corrections.