Gold prices climbed while silver experienced sharp swings on Friday amid a global stock market rout and increased margin requirements by CME for precious metals.
Spot gold surged 2.3% to $4,879.45 per ounce by 05:52 GMT, marking a modest 0.3% gain for the week. Meanwhile, US gold futures for April delivery added 0.2% to $4,897.20 per ounce.
Read More: Gold and silver bounce back after sharp volatility
Silver, however, displayed extreme volatility. The white metal jumped 3.8% to $73.91 per ounce after plunging nearly 10% earlier in Asia trade to below $65, its lowest in over a month and a half. Silver had fallen 19.1% in the previous session, and for the week, it declined more than 13%, following an 18% drop last week — its largest weekly loss since 2011. China’s only silver futures fund hit its 10% daily limit on Friday, marking its sixth consecutive session of decline.
Analysts cited weakening risk sentiment as a key factor. Ilya Spivak, head of global macro at Tastylive, noted, “Gold is kind of holding its own, and silver is caving in under the risk-off environment.”
Global equities extended losses into a third day as Wall Street selloffs intensified, heightening volatility in precious metals and cryptocurrencies. ANZ analyst Soni Kumari said the timing of the silver correction, just before Chinese New Year, could encourage renewed buying by Chinese consumers, though near-term swings may continue as weak positions unwind.
Read More: Gold prices rise by Rs 14,800 per tola
To curb market risks, CME Group raised margin requirements for gold and silver contracts for the third time this year. Other precious metals saw gains as well: spot platinum rose 0.4% to $1,993.95 per ounce after hitting an all-time high of $2,918.80 on January 26, while palladium increased 2.2% to $1,651.74. Both metals, however, recorded weekly declines.
Investors are closely monitoring the combination of equity volatility, margin adjustments, and seasonal demand for potential further movements in precious metals markets.