Pepperstone Expert Analyzes Sharp Decline in Precious Metals

Pepperstone’s Michael Brown reported a sharp decline in gold, silver, and copper during Monday’s Asian session, continuing the downward trend from the previous Friday.

This decline reflects concerns over market volatility, although long-term bullish indicators like central bank demand remain strong, potentially leading to a market correction soon.

Precious Metals See Most Rapid Decline in Recent Times

The precious metals market faced a sharp decline beginning last Friday, as analyzed by Pepperstone’s Michael Brown. Gold, silver, and copper all experienced noteworthy price reductions, described as “too sharp and too fast,” hinting at a market excess. Potential for a market rebound, labeled a “dead cat bounce,” is present.

Geopolitical factors continue to bolster the long-term demand for precious metals. Despite recent declines, investors may retain interest due to central bank demand and geopolitical hedging benefits superior to the US dollar or Treasuries. Market correction may clear speculative positions, aligning prices with fundamentals.

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The current correction also exhibits the characteristic of being ‘too sharp and too fast.’ The market is likely to see a so-called ‘dead cat bounce.’

Bitcoin Falls but Remains a Giant in Market Cap

Did you know? Central bank demand for gold has historically provided a stabilizing factor during sharp market corrections. As geopolitical concerns rise, gold often emerges as a preferred hedge.

Bitcoin (BTC) has faced notable declines, as per CoinMarketCap data. On February 2, 2026, BTC stands at $74,886.68, marking a 4.44% drop in 24 hours. The crypto’s market cap is $1.5 trillion with a dominance of 58.82%. Despite a recent downturn, BTC maintains significant market influence.

According to Coincu’s research, current financial trends suggest speculative bubbles in metals could forecast changes in regulatory landscapes across financial markets. Long-term stability may rely on geopolitical factors, while technological advancements continue reshaping investment strategies.