Market Analysis Summary - CME Raises Gold and Silver Margins
Market Highlights (February 6, 2026)
Recent economic data has shown a rise in initial U.S. jobless claims due to a snowstorm, while job openings have dropped to their lowest in over five years. This has led to a significant sell-off in U.S. equities, particularly affecting major technology stocks like Microsoft and Amazon, resulting in the Nasdaq reaching its lowest point since November. The Dow Jones Industrial Average fell by 1.2%, the S&P 500 by 1.23%, and the Nasdaq Composite by 1.59%. Concurrently, the U.S. dollar index rose to a two-week high, while the British pound weakened following a narrow decision by the Bank of England to maintain interest rates.
In geopolitical news, the second round of U.S.-mediated talks between Ukraine and Russia has reduced the demand for safe-haven assets, leading to a decline in gold and silver prices. Spot gold closed down 3.7% at $4,769.89 per ounce, while WTI crude oil also fell by 2% amid easing concerns over Iranian oil supply following U.S.-Iran discussions.
Key Economic Outlook
Today's focus is on Germany's December industrial production, which is expected to contract by 0.3%, marking the first decline in four months. Canada will also release its employment report, with the unemployment rate anticipated to remain at 6.8% and job gains expected to slow. This data is likely to reinforce the expectation that the Bank of Canada will keep interest rates steady.
In the U.S., the nonfarm payrolls report has been postponed to next week, while attention will shift to the preliminary February University of Michigan Consumer Sentiment Index, which is expected to decrease to 55 from 56.4.
Market Analysis
Currency Pairs
- EUR/USD: Slipped to 1.1788 as a stronger USD capped gains. Key support levels are at 1.1771 and 1.1711.
- GBP/USD: Fell to 1.3550 after the BoE's decision to hold rates, with support at 1.3421 and 1.3343.
- USD/JPY: Remained firm with resistance at 157.35 and support at 156.51.
Commodities
- WTI Crude Oil: Eased towards $63 as geopolitical tensions eased, with support at $60.70.
- Spot Gold: Dropped towards $4,760 due to dollar strength, with key support at $4,688.
- Spot Silver: Experienced a decline, with resistance at $80.92 and support at $62.52.
Equity Indices
- Dow Futures: Slipped with resistance at 49,298 and support at 48,570.
- NASDAQ 100: Fell amid selling pressure on tech stocks, with key support at 24,051.
Cryptocurrency
- Bitcoin: Continued to decline, holding support between $58,999 and $61,090.