ETO Markets Global Pulse: Gold, Silver Crash as Walsh Nomination Triggers Liquidation

Market Review

According to ETO Markets monitoring, on Jan 30 (Friday) spot gold plunged after the prior sessions record high. The intraday drop reached 9.5%, with a low at USD 4,686.12/oz, before closing at USD 4,883.62/oz.

Meanwhile, February COMEX gold futures fell 11.4%, the largest one-day decline since 1983, and monthly volatility also hit a record extreme.

Silver saw an even sharper unwind. Spot silver dropped from USD 121.48/oz with an intraday fall of up to 35%, hitting USD 73.49 at the low and closing at USD 84.43/oz. This was the biggest one-day drop since 1982, per London Stock Exchange Group data.

During Asian trading on Feb 2 (Monday), gold and silver extended losses at the open. Spot gold fell more than 3% intraday, with volatility still elevated.

Global Headlines

Walsh Nomination Spurs Repricing

Trump has nominated Kevin Warsh as the next FED Chair. Warsh has long advocated balance-sheet reduction, which revived uncertainty over liquidity and funding conditions. Stanley Druckenmiller noted Warsh is not a permanent hawk, but markets still repriced rates and risk premia sharply.

U.S.-Iran Talks Signal, Risks Stay

Trump said he hopes to reach a deal with Iran. Iran‘s foreign minister said progress has been made via regional intermediaries. Iran’s Supreme Leader warned any U.S.-initiated war could escalate region-wide, keeping geopolitical risk elevated.

Israel Hits Lebanon Targets Again

Israel said it struck multiple targets in southern Lebanon and carried out precision strikes against Hezbollah-linked personnel. Israel framed the action as a response to ceasefire violations and a move to prevent militant regrouping.

Funding Bill Passes, Shutdown Looms

The U.S. Senate passed a USD 1.2 trillion spending bill. With the House not yet back in session, parts of the federal government could still face a brief shutdown, adding to near-term uncertainty.

Trump Names BLS Chief Pick

Trump plans to nominate Brett Matsumoto to lead the U.S. Bureau of Labor Statistics (BLS), which publishes key data including NFP. The nomination follows earlier personnel disputes that had raised concerns over data independence.

CME Hikes Precious-Metal Margins

CME raised margin requirements for COMEX gold, silver and other precious-metal futures, effective after the Feb 2 close. CME cited volatility reviews and the need for sufficient collateral coverage.

ETO Markets Analyst View (Spot Gold)

Gold has turned tactically bearish after extreme volatility and margin hikes. The market is still in a forced deleveraging phase, with liquidation flows likely to dominate in the near term.

The key pivot is USD 4,960. Below this level, price action may stay weak and choppy. A sustained move back above it would suggest a technical repair is taking hold.

RSI remains in decline, indicating downside momentum is still being released and stabilization signals are not yet clear. With volatility amplified, gold may trade in a “flush-then-repair” rhythm. Investors should carefully manage pacing and risk exposure.

Disclaimer

The information contained herein is for general reference only and does not constitute investment advice, a solicitation, or an offer to buy or sell any financial products.

ETO Markets does not guarantee the accuracy, completeness, or timeliness of the information and shall not be liable for any losses incurred from reliance on such content.