Gold and Silver Lose $1.28 Trillion as Lunar New Year Liquidity Hits Markets

Gold and silver have entered a sharp correction, slipping for a second straight session and hitting commodity ETFs by as much as 4%. The sudden downturn erased an estimated $1.28 trillion in combined market value, underlining how even traditional safe havens can be vulnerable to swift macro and liquidity shocks.

The pullback follows a powerful rally that had pushed gold above $5,000 per ounce and sent silver to an all-time high of $121.646 in late January. Silver has been particularly hard hit, trading around $74.11 and down nearly 40% from its ATH, a sign of its smaller market size and greater industrial sensitivity.

Seasonal liquidity effects tied to the Lunar New Year are a widely cited near-term driver, as reduced participation in mainland China, Hong Kong, Singapore, Taiwan and South Korea can amplify price swings in global futures and physical markets.

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