NEW YORK — The gold price tumbled Thursday as investors unwound safe-haven trades across global commodity markets, pulling oil and copper lower in a sharp risk reset, Feb. 5, 2026.
The retreat gathered pace after signs of easing U.S.-China friction and renewed U.S.-Iran diplomacy cooled demand for protection assets, while a firmer dollar and tighter margin rules added to the pressure.
Gold price slides as safe-haven demand cools
Spot gold was down 2.5% at $4,838.81 an ounce in early trade, while U.S. gold futures eased 1.9%, according to a Reuters market update. The gold price is pulling back after bullion’s run to a record $5,594.82 last week.
Silver: down nearly 15% after last week’s record high of $121.64.
Dollar: near a two-week high, which can weigh on greenback-priced commodities.
Positioning: traders continued to trim leveraged bets after the latest surge.
The selloff follows a week of violent swings and comes after Trump nominated Kevin Warsh as the next Federal Reserve chair, a move that helped lift the dollar and pushed investors to reassess the path for rates.
“We saw extreme volatility in precious metals and other commodities this week, and what we are witnessing today are some aftershocks,” IG analyst Tony Sycamore said in a separate Reuters report from Asia.
Behind the scenes, higher collateral demands also mattered. A recent CME Clearing notice on performance bond requirements outlined increased margin levels for multiple gold and silver futures products, a shift that can force some traders to cut exposure.
Oil and copper retreat as risk appetite shifts
Crude prices slipped after the U.S. and Iran agreed to hold talks in Oman on Friday. Brent fell 1.9% to about $68 a barrel and U.S. West Texas Intermediate dropped 1.9% to roughly $64, Reuters reported. The report noted that about a fifth of global oil consumption moves through the Strait of Hormuz, a key reason tensions can translate quickly into price swings.
Copper fell about 2% as traders weighed demand uncertainty and rising inventories in exchange-registered storage. The London Metal Exchange’s warehouse and stock reports track daily stock movements and cancellations that feed into near-term supply expectations.
Gold price whiplash isn’t new
Thursday’s reversal echoes earlier episodes when the gold price dropped as geopolitical fears faded. In April 2024, gold fell more than 2% after worries over a wider Middle East conflict subsided, according to a Reuters report from that period.
The same playbook showed up in February 2022, when gold slipped as signs of de-escalation in the Russia-Ukraine standoff dented safe-haven demand, Reuters reported in a market wrap. More recently, in October 2025, the gold price fell below $4,000 as traders priced in progress toward a U.S.-China trade deal, another Reuters story noted.
For now, markets are watching Friday’s U.S.-Iran talks, the next signals on U.S.-China trade, and interest-rate decisions from the European Central Bank and the Bank of England for clues on whether the gold price stabilizes — or whether the risk reset still has further to run.
