Quantitative strategy amplifies liquidity slippage; gold rebounds after sharp decline to $5,100 per ounce

WealthCoffee · 2026-03-06T03:12:44+00:00

The tense situation in the Middle East has caused sharp fluctuations in international gold and silver prices. Although gold and silver prices opened sharply higher on March 2, they continued to decline afterward. On March 3, gold futures prices dropped from $5,434 to $5,005, and silver also experienced significant volatility, ultimately closing at $82.

WealthCoffee

2026-03-06 03:12:44

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【Caixin.com】 “The decline in gold and silver prices seems to be ‘stealing the spotlight,’ I really didn’t expect them to fall so much,” said a derivatives trader who shorted the Korean stock market but did not short precious metals.

Since February 28, 2026, the Middle East situation has suddenly spiraled out of control, with the US, Israel, and Iran conflict remaining uncertain. Driven by the potential risk of war, international gold and silver prices initially gapped higher at the open on March 2 (Monday), reaching $5,400 per ounce, but the rally failed to continue and quickly reversed downward, closing lower for two consecutive trading days.

On March 3, market volatility intensified significantly. The New York Mercantile Exchange (COMEX) gold futures fluctuated by as much as 4% intraday, dropping sharply from the previous high of $5,434 per ounce caused by war expectations, with a low of $5,005 per ounce, ultimately closing below the $5,100 mark. Silver experienced even more dramatic swings, with intraday volatility exceeding 8%. It plummeted from the previous high of $97 per ounce, with a low of $78 per ounce during the session, and closed at $82 per ounce.

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