Gold prices rose on Friday while silver experienced sharp intraday swings as investors moved away from risk assets amid a continued sell-off in global equities, with heightened volatility prompting higher margin requirements on precious metals contracts, market data and analysts said.
Spot gold climbed 2.3 per cent to $4,879.45 per ounce by 05:52 GMT, extending gains as global stock markets fell for a third consecutive session. Despite the daily increase, gold was up only marginally on the week, gaining about 0.3 per cent. US gold futures for April delivery were also higher, rising 0.2 per cent to $4,897.20 per ounce.
Silver prices were markedly more volatile. Spot silver rose 3.8 per cent on the day to $73.91 per ounce after sliding nearly 10 per cent earlier in Asian trading, briefly falling below the $65 level, its lowest in more than six weeks. The metal had dropped 19.1 per cent in the previous session, underscoring the scale of recent price swings.
On a weekly basis, silver remained under heavy pressure. The metal was down more than 13 per cent for the week, following an 18 per cent decline the week before. That marked its steepest weekly loss since 2011, according to market data.
The sell-off extended to silver-linked investment products in Asia. China’s only silver futures fund fell by its daily limit of 10 per cent on Friday, recording its sixth consecutive session of losses.
Market participants said the diverging performance of gold and silver reflected broader shifts in risk appetite. Ilya Spivak, head of global macro at Tastylive, said weakening investor sentiment was evident across asset classes. In that environment, he said, gold was relatively resilient, while silver was suffering sharper losses as investors reduced exposure to riskier positions.
Global equities continued to slide as selling pressure on Wall Street intensified, contributing to volatility across commodities and digital assets. Precious metals and cryptocurrencies both experienced wide price fluctuations as investors adjusted portfolios in response to falling stock markets and heightened uncertainty.
Some analysts said recent price corrections could support near-term physical demand, particularly in Asia. Soni Kumari, an analyst at ANZ, said the pullback in gold and silver prices had occurred ahead of the Chinese New Year period, when consumer buying typically increases. She added that volatility could persist in the near term as weaker positions in the market were unwound.
Against this backdrop, the CME Group raised margin requirements for gold and silver contracts on Thursday. The exchange operator, the world’s largest commodities marketplace, has increased margins on precious metals for the third time this year, citing the need to mitigate risks linked to elevated price volatility.
Other precious metals also saw gains on the day, though they remained lower for the week. Spot platinum rose 0.4 per cent to $1,993.95 per ounce after having reached a record high of $2,918.80 on January 26. Palladium gained 2.2 per cent to $1,651.74 per ounce. Both metals, however, were down on a weekly basis as broader market pressures weighed on prices.