The gold price, which had been steady above $5,000 an ounce and even briefly exceeded $5,100, plummeted by more than $100 and bottomed out around $4,900.
Meanwhile, silver fell from more than $80 an ounce to less than $75.
Market watchers have offered several reasons for these declines, with the general talking point being that precious metals moved in line with the broader stock market.
Thursday brought declines in the major US indices, according to investors responded to concerns that several industries could be negatively affected by the automation of artificial intelligence.
With gold and silver it is of course always possible that there is more going on beneath the surface. Many of our popular YouTube channel guests commented on this week’s price drop on X, and some even Willem Middelkoop And Craig Hemkesuggesting that manipulation was involved.
I also read that it is a Russian memo seen by Bloomberg may have had a dampening effect on gold – the report details Kremlin proposals that could see the country return to the US dollar clearing system as part of an economic partnership with the Trump administration.
Whatever the reason for the decline, gold and silver bounced back on Friday (February 13), with silver back above $77 and gold closing at the $5,043 level.
The recovery came despite a little bit cooler than expected U.S. Consumer Price Index data has eased inflation concerns and fueled expectations for rate cuts from the U.S. Federal Reserve.
Looking ahead, I would like to emphasize again that the broad consensus among the experts I spoke with remains that the rise in gold and silver prices is not yet over.
However, that doesn’t mean the path will be straight up. I heard this week from Keith Weiner of Monetary Metals, who talked about the importance of weathering volatility:
“I mean, we’re in a bear market for the dollar for reasons. And so people better be prepared for the volatility, because when things go off the rails, and that’s what’s happening with the dollar, there’s going to be volatility. And there are days when people can’t sell enough of the dollar, and there are days when they’re desperately and urgently trying to get as many dollars as possible, and the dollar is extremely well-supplied – you’re going to see the price of gold drop. So you’re going to have it both ways, but the trend is clear and the drivers are clear.”
Keith calls for $6,000 worth of gold by 2026 and a silver price of $120 by the end of the year. The $6,000 figure is consistent with recent times projections from BNP Paribas And CIBCwith forecasts indicating that major banks also continue to see strength in gold.
Bullet briefing — Top takeover candidates
Merger talks between commodities giants Rio Tinto (ASX:RIO,NYSE:RIO,LSE:RIO) and Glencore (LSE:GLEN,OTCPL:GLCNF) have collapsed, resulting in the biggest ever deal for the mining industry, but merger and acquisition activity in the sector continues to increase.
A new one research by TD Cowen identifies IAMGOLD (TSX:IMG,NYSE:IAG) as the top acquisition candidate of the year, with nearly 20 percent of 58 respondents citing the company.
Artemis Gold (TSXV:ARTG,OTCQX:ARGTF) was in second place with 11 percent, while Arizona Sonoran Copper Company (TSX:ASCU,OTCQX:ASCUF) was in third place with 7 percent.
Nearly all respondents, including institutional investors and mining executives, said they expect more mergers and acquisitions of gold, silver and copper in 2026 than last year.
We’ll have to wait and see how any deals turn out, including Barrick Mining’s (TSX:ABX,NYSE:B) planned IPO for its North American gold assets.
Newmont (NYSE:NEM,ASX:NEM), Barrick’s partner in the Nevada Gold Mines joint venture, said this is the case concerns about governance of the operation and wants to see improvements – a clash between the two miners could disrupt Barrick’s plans.
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Securities Disclosure: I, Charlotte McLeod, have no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to conduct their own due diligence.
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