By 05:52 GMT, spot gold had risen 2.3% to $4,879.45 per ounce, putting it up 0.3% for the week. Meanwhile, U.S. gold futures for April delivery edged up 0.2% to $4,897.20 per ounce, reinforcing gold’s role as a traditional safe haven when markets turn uncertain.
Silver, however, experienced extreme volatility. The metal surged 3.8% to $73.91 per ounce after plunging roughly 10% earlier in Asian trade, dropping below the $65 mark—a level not seen in over six weeks. Silver had fallen 19.1% in the previous session, and for the week, it was down more than 13%, following an 18% decline last week—its steepest weekly drop since 2011.
The turbulence has also hit China’s only silver futures fund, the UBS SDIC Silver Futures Fund, which dropped by its 10% daily limit on Friday, marking its sixth consecutive session of decline.
Market analysts say the swings reflect a broader deterioration in risk sentiment. “There’s all kinds of evidence that risk sentiment in general is weakening,” said Ilya Spivak, head of global macro at Tastylive. “In this environment, gold is holding its own while silver is caving in under the risk-off mood.”
Global Markets Slip, Cryptos and Commodities Feel the Shock
Global equities extended losses for a third straight session as Wall Street’s selloff intensified, spreading fear through commodities and cryptocurrencies. The shock waves were particularly visible in precious metals, which often react sharply during risk-off periods.
Despite the turbulence, some analysts believe the recent correction in precious metals could present a buying opportunity. Soni Kumari, an analyst at ANZ, noted that the downturn in gold and silver came “at the right time, just before Chinese New Year,” and suggested that demand from Chinese consumers could pick up in the near term. Still, she cautioned that “near-term volatility can continue until some unwinding of weak positions.”
CME Raises Margins to Reduce Trading Risk
In response to the volatility, CME Group raised margin requirements for gold and silver contracts on Thursday, marking the third hike this year. The move is intended to safeguard the exchange against extreme price swings and heightened trading risk.
Platinum and Palladium Also Move Higher, but End the Week Lower
Other precious metals showed modest gains on Friday. Spot platinum rose 0.4% to $1,993.95 per ounce, after reaching an all-time high of $2,918.80 on January 26. Palladium climbed 2.2% to $1,651.74, although both metals were still set to end the week in negative territory.