CryptoWire, NEW YORK: Bitcoin traded in a tight range on Friday while precious metals fell sharply, reversing part of a powerful January rally that pushed gold and silver to record highs. The contrast left the cryptocurrency market comparatively steady as bullion prices swung widely and volatility rippled through futures, exchange traded products and mining shares tied to gold and silver.
Bitcoin was near $82,800 during the session, showing limited movement after trading between roughly $81,900 and $84,400. The narrow band followed a modest pullback a day earlier, with price action on Friday marked by smaller percentage moves than those seen in precious metals. Trading remained active across major crypto venues, with bitcoin holding above the day’s lows as bullion extended its decline.
Gold dropped from record levels reached on Thursday. Spot gold was down about 4.7% at $5,143.40 an ounce in early afternoon trade, after touching a record $5,594.80 in the prior session. Silver fell about 11% to $103.40 an ounce after hitting a record $121.60 on Thursday. Prices were volatile through the day, with some benchmarks showing deeper intraday declines before losses narrowed.
The metals slide coincided with renewed focus on US monetary policy after President Donald Trump said he would nominate former Federal Reserve governor Kevin Warsh to be the next Fed chair, with Jerome Powell’s term set to end in May. The US dollar strengthened during the session, a move that can weigh on dollar priced commodities. Trading in bullion accelerated after the previous day’s surge, with heavy turnover in futures and related products.
Precious metals reverse from record highs
The pullback hit bullion linked exchange traded products and shares of mining companies as prices moved lower. Funds that track gold and silver fell in line with spot and futures benchmarks, while producers with revenue tied to bullion prices were among the decliners. The retreat followed a month of steep gains in precious metals, with gold up strongly in January before the latest reversal reduced those advances.
Futures market risk controls also tightened as volatility surged. CME Group raised margin requirements for Comex gold and silver futures after the sharp price moves, increasing the amount of collateral traders must post to hold positions. For non high risk accounts, gold margins were raised from 6% of contract value to 8%, with higher settings applied to accounts classified as higher risk. Silver margins were also increased, with higher levels applied for elevated risk profiles.
Margin changes and broad commodity swings
Other metals also fell as the selloff spread beyond gold and silver. Platinum and palladium prices declined sharply during the same stretch, and copper weakened as the broader commodities complex pulled back. The moves followed an outsized advance earlier in the week that lifted multiple metals to record levels and widened daily trading ranges across spot, futures and related derivatives.
By late trading, gold and silver were off their lows but remained well below Thursday’s peaks, marking one of the most volatile two day periods for precious metals in years. Bitcoin, by contrast, stayed near the mid $82,000 level and finished the session with a comparatively modest move. The day’s price action highlighted the scale of the reversal in bullion even as crypto markets remained relatively steady.