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China’s precious metals meltdown is going again

ADMIN || 2nd February 2026

Gold and silver’s brief respite early Monday is over with Chinese futures markets open and fresh waves of selling breaking out. Spot gold is through its intraday lows from Friday as bullion futures in Shanghai head sharply down.

News that a counterparty fled China leaving deals unfinished, which Bloomberg reported according to people familiar with the matter, may be helping to spur the slide.

The drop in gold and silver on global markets also looks to be reviving the earlier USD squeeze.

Renewed selling across precious metals is hurting sentiment across asset classes. The euro is turning lower, along with US equity contracts and long-end bonds.

Moreover, the early losses for Kospi and Taiwanese equities are likely to undermine Hong Kong and China. It’s going to be another bumpy ride for macro traders.

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