Why is the gold price falling today?

A stronger US dollar and rising real yields are weighing on bullion. Markets read the Kevin Warsh Fed pick as a signal of firmer policy bias, which pushed the dollar higher. That triggered margin calls and forced selling in crowded precious-metals positions, extending Friday’s slump and feeding today’s further drop across gold and silver.

How does US dollar strength affect Swiss investors in gold?

Bullion is priced in USD, so a stronger dollar tends to lower demand and pressure prices. For Swiss investors, returns depend on both metal moves and USDCHF. CHF-denominated funds reflect the combination. If the franc strengthens versus the dollar, it can reduce CHF returns from gold, and the reverse is also true.

Should I buy the dip in gold or silver now?

Consider a staged approach. Revisit your target allocation first, then scale entries to manage timing risk. Silver is more volatile than gold, so size positions accordingly. Use limit orders and check product spreads, FX impact, and margin rules. Avoid leverage in thin liquidity, and be ready to pause if the dollar remains strong.

What risks should I watch if forced selling continues?

Further forced selling can widen spreads, trigger gaps, and spill into mining shares and broader equities. Volatility can lift margin needs suddenly. A sustained dollar rally would cap rebounds. Monitor liquidity, real yields, and USDCHF. Keep cash buffers, use limit orders, and stick to predefined stop-loss and rebalancing rules.

Global Market Insights

February 02: Gold Price Rout Deepens as Dollar Soars on Warsh Pick

ByDanny Kontos February 2, 2026February 2, 2026

The gold price rout deepened on February 2 as US dollar strength accelerated after the reported Kevin Warsh Fed pick. In early European trade, gold traded near $4,480 per ounce and silver around $74, extending Friday’s historic slump. Forced selling and margin calls hit crowded trades, rattling sentiment. For Swiss investors, CHF exposure, product pricing, and liquidity now matter most. We explain what drove the move, what it means in Switzerland, and how to manage risk while markets reset.