NEW YORK — Gold prices deepened the gold crash in global trading Monday, extending a two-session rout that rattled metals and spilled into oil and stock futures. Traders blamed forced selling after CME margin hikes, shifting rate expectations after President Donald Trump’s Warsh pick for Federal Reserve chair, and signs of an Iran thaw that cooled crude, Feb. 2, 2026.
Spot gold was down 1.8% at $4,775.96 an ounce after recovering from an early slide of nearly 10%, according to a Reuters report on the precious-metals rout. The metal fell more than 9.8% Friday — its sharpest one-day drop since 1983 — after touching a record $5,594.82 Jan. 29.
Silver swung even harder. Spot silver was down 1.1% at $83.73 after sliding as much as 15% earlier Monday and is about 33% below last week’s peak, highlighting how quickly the gold crash has spread across precious metals.
What drove the gold crash
CME Group said higher performance-bond requirements would take effect after the close of business Monday, increasing the cash traders must post to hold futures positions. The exchange’s margin advisory notice shows initial and maintenance requirements for Comex 100 gold futures rising to 8% from 6%, while some silver contracts increase to 15% from 11%.
“Margin hikes make holding speculative positions less appealing,” said Zain Vawda, an analyst at MarketPulse by OANDA, warning the moves can intensify margin calls during a fast gold crash.
The policy backdrop shifted after Trump nominated former Federal Reserve governor Kevin Warsh to replace Jerome Powell in May, a move the White House detailed in its nomination roundup. Investors have focused on whether Warsh would pair rate cuts with balance-sheet tightening, a combination that can support the dollar and pressure bullion.
From metals to oil, the rout widens
Oil prices fell as traders stripped out geopolitical risk. Brent crude dropped about 4.8% to $65.98 a barrel and U.S. West Texas Intermediate slid about 5.2% to $61.84, according to Reuters’ report on the oil selloff. The move followed Trump’s comment that Iran was “seriously talking” with Washington, signaling de-escalation after a January surge tied to Middle East tensions.
U.S. stock index futures slipped as the commodity shock hit mining and energy shares, a dynamic highlighted in a Reuters markets update on the spillover. “Markets are trading cautiously,” said Daniela Hathorn, a senior market analyst at Capital.com, citing thin liquidity and sensitivity to macro headlines tied to the gold crash.
Echoes of earlier sell-offs
Market veterans see parallels in past episodes when margins and geopolitics turbocharged moves: CME’s rapid 2011 silver margin increases, outlined in a Reuters factbox; gold’s steep two-day slide in 2013, described in an ABC News recap; and the oil market’s reaction to Iran’s 2015 nuclear deal, analyzed in a Reuters look at Iran’s potential oil return.
For now, traders are watching whether the gold crash steadies once new margins are absorbed and whether this week’s economic data reinforces — or challenges — the shift toward a firmer dollar.
