Gold, Silver Prices Crash up to 4%: What Is Driving This Selloff? Should You Buy?

•February 17, 2026

Mint (LiveMint) – Markets•Feb 17, 2026

Why It Matters

The decline erodes portfolio hedges and signals shifting risk sentiment, impacting investors and miners alike. It also tests the resilience of precious metals as safe‑haven assets in a strengthening dollar environment.

Key Takeaways

•Gold down 4% as dollar strengthens
•Silver falls similarly, profit‑taking dominates
•Geopolitical tension eases, reducing safe‑haven demand
•Gold near 20‑day EMA, support broken
•Analysts advise caution before buying

Pulse Analysis

The recent 4% plunge in gold and silver prices reflects the dominant influence of a strengthening U.S. dollar on commodity markets. As the Federal Reserve signals higher short‑term rates, investors shift from non‑yielding assets toward dollar‑denominated instruments, squeezing precious‑metal valuations. While geopolitical flashpoints earlier in the year had bolstered safe‑haven demand, the latest easing of tensions removed that catalyst, allowing profit‑taking to accelerate. Consequently, the dollar’s upward momentum has become the primary driver of the sell‑off, outweighing traditional inflation‑hedge narratives.

On the technical front, gold is hovering around its 20‑day exponential moving average (EMA) after breaching a key support zone near $1,950 per ounce last week. The loss of that floor suggests short‑term weakness, yet the EMA may act as a magnet for price rebounds if buying interest resurfaces. Silver, which typically moves in tandem with gold, mirrors the same pattern, slipping below its own 20‑day EMA. These chart signals, combined with widening spreads between spot and futures contracts, hint at continued volatility as traders reassess risk appetite.

From an investment perspective, the sharp pullback creates a dilemma: whether to add to positions at lower levels or wait for clearer directional cues. For hedgers and mining companies, the dip pressures earnings forecasts and may trigger cost‑cutting measures. Conversely, value‑oriented investors view the correction as a potential entry point, especially if the dollar’s rally stalls or inflation data remain sticky. Monitoring upcoming macro releases—such as U.S. CPI, employment figures, and Fed commentary—will be crucial in gauging whether the sell‑off is a short‑lived reaction or the start of a broader downtrend in precious metals.