Summary of Increased Spreads on Precious Metals

Date: 6 February 2026

Market Overview

The US stock market experienced a significant sell-off, with major indices such as the S&P 500 and Dow Jones both declining by 1.2%, and the Nasdaq falling nearly 1.6%. This downturn was primarily driven by disappointing labor market data and underwhelming earnings reports from technology companies.

Technology Sector Performance

Amazon reported strong revenues and growth in its AWS segment; however, its stock price plummeted by approximately 10% in after-hours trading. Investors expressed concerns over Amazon's plans to invest around $200 billion in artificial intelligence by 2026, which could negatively impact cash flows.

Global Market Reactions

Asian markets reacted negatively to the US tech sell-off, with Hong Kong's Hang Seng index dropping 1.13% and Australia's ASX 200 losing 2.26%. Conversely, Japan's Nikkei 225 saw a slight increase of 0.29% ahead of upcoming elections, while China's Shanghai Composite gained 0.11%.

Economic Indicators

In Japan, a Bank of Japan board member adopted a cautiously hawkish stance, indicating potential policy tightening due to inflation concerns linked to a weak yen. December data showed a 2.6% year-on-year decline in household spending, significantly below forecasts.

In Australia, the Reserve Bank of Australia (RBA) Governor emphasized the necessity of rate hikes due to strong labor market conditions and persistent inflation. Meanwhile, the People's Bank of China set the USD/CNY reference rate at 6.99590, higher than market expectations.

The Reserve Bank of India maintained its interest rates at 5.25%, aligning with market expectations, and is considering a significant purchase of Boeing aircraft worth up to $80 billion following a trade agreement with the US.

Precious Metals Market

In response to extreme market volatility, the CME raised margin requirements for gold and silver contracts. The precious metals market showed signs of recovery, with gold prices rising approximately 1.5% to test the $4,850 per ounce level, while silver surged about 3.5%, hovering around $73 per ounce.

Cryptocurrency Market

The cryptocurrency market also experienced a partial rebound, with Bitcoin gaining over 2% to reach $65,100 and Ethereum increasing by over 3% to $1,920.

Conclusion

The market dynamics on February 6, 2026, reflect a complex interplay of economic indicators, corporate earnings, and global sentiment, particularly in the technology sector, which has significant implications for precious metals and other asset classes.