Gold and silver markets are in a pointy correction, with costs falling for a second consecutive session. Commodity-based exchange-traded funds (ETFs) are additionally declining by as a lot as 4%.
The sudden downturn has erased an estimated $1.28 trillion in mixed market worth, reflecting how even conventional safe-haven belongings stay susceptible to macro shocks and liquidity shifts.
Lunar New 12 months Liquidity and Macro Pressures Gasoline Gold and Silver Correction
The decline follows a robust rally earlier in 2026 that pushed gold above $5,000 per ounce and drove silver to file highs.
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Analysts now say the pullback displays a mixture of seasonal elements, macroeconomic stress, and profit-taking after an prolonged run-up.
Silver has been hit significantly exhausting, falling practically 40% from its all-time excessive (ATH) of $121.646 recorded in late January.
As of this writing, Silver (XAG) was buying and selling at $74.11, reinforcing its status as a extra risky counterpart to gold, given its smaller market dimension and stronger industrial demand.
Silver (XAG) Worth Efficiency. Supply: TradingView
“Gold and Silver wiped out $1.28 trillion today… even ‘safe havens’ bleed,” wrote one analyst, emphasizing the pace of the decline and the dangers of assuming stability in any asset class.
Others pointed to the function of market construction and liquidity, arguing that non permanent dislocations could happen when key bodily markets gradual, significantly in Asia.
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Lunar New 12 months Liquidity Results Come into Focus
Towards this backdrop, one of the crucial extensively cited short-term drivers is the Lunar New 12 months vacation interval, throughout which buying and selling exercise throughout main Asian monetary facilities declines sharply.
Mainland China, Hong Kong, Singapore, Taiwan, and South Korea all expertise decreased participation as merchants, producers, and market makers step away.
Decrease liquidity can amplify value actions in international futures markets, particularly for commodities like silver, the place bodily demand from the Chinese language business performs a significant function.
Weaker demand throughout the vacation interval may quickly stress costs, with bodily shopping for probably resuming as soon as factories and exchanges return to full exercise.
I’m anticipating silver costs to get slammed this week because of the Chinese language New 12 months, that means the Shanghai change is not functioning. There might be a uncommon shopping for alternative off the dip, as NY and London interact in last-ditch determined paper shorts. All of the shenanigans will…
— HealthRanger (@HealthRanger) February 16, 2026
Analysts Warn of Continued Volatility As Macro Pressures Weigh on Bullion
Past seasonal elements, broader macroeconomic developments are additionally contributing to the downturn. Valuable metals got here beneath stress as traders targeted on narratives that strengthen the US greenback within the quick time period. These embody:
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A firmer greenback usually weighs on bullion by making gold and silver costlier in different currencies, lowering demand from worldwide patrons.
ETF flows mirror the cautious sentiment. A number of gold and silver ETFs declined between 2% and 4%. This mirrors weak point in futures markets and means that some traders are locking in earnings after the current rally.
In the meantime, market strategists say treasured metals are actually in a “volatile consolidation phase.” After such a powerful advance, corrections and sideways buying and selling are frequent as markets digest positive factors and rebalance positions.
Metals Are Too Sizzling If Commodities Are a Information-
The stretched metals sector is harking back to its July-August 2020 peak vs. broad commodities. A high sign that silver received too scorching in January, when it surged above $100 an oz., was its greatest-ever stretch vs. copper and crude… pic.twitter.com/PkQuBYSc5Z
— Mike McGlone (@mikemcglone11) February 15, 2026
Due to this fact, a disciplined strategy could also be advisable, reasonably than chasing costs at elevated ranges; as an alternative, take into account staggered shopping for throughout corrections.
Technical evaluation additionally exhibits key help ranges, with estimates inserting silver value help close to $65 per troy ounce and gold help round $4,770 per ounce on a weekly closing foundation.
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Whereas these ranges may decide whether or not the present pullback stabilizes or deepens, traders ought to conduct their very own analysis.
Regardless of the sharp drop, structural forces similar to rising international debt, foreign money debasement, and historic cycles in ratios, such because the gold–silver ratio, may help a robust long-term bull market in treasured metals.
BREAKING: US nationwide debt is ready to surge +$2.4 trillion PER YEAR over the subsequent 10 years, in response to new CBO estimates.
Because of this, US debt will probably attain a file $64 TRILLION in 2036, doubling from 2023 ranges.
That might be TRIPLE the debt recorded in 2018, earlier than the… pic.twitter.com/cYnyht45ec
— The Kobeissi Letter (@KobeissiLetter) February 16, 2026
If historic ratio reversals repeat, silver may expertise important upside over the approaching decade, probably reaching dramatically increased value ranges by the early 2030s.
