Summary of the Metals Market Flash Crash

Date: February 12, 2026

Author: Elior Manier

Overview

The metals market experienced significant volatility, with gold prices dropping to $4,900 and silver prices falling to $76. This represented declines of 2.75% and 10% respectively during the trading session. The sudden selloff was attributed to a lack of supporting news, often referred to as a "fat finger" event, where large liquidation orders occur unexpectedly.

Market Reactions

Market dynamics shifted following comments from Israeli Prime Minister Netanyahu, indicating that U.S. President Trump preferred negotiating with Iran, which led to a reduction in risk premiums associated with commodities. This news came after a strong performance from metals in response to hawkish Non-farm payroll data, which had previously suggested a reduced likelihood of Federal Reserve interest rate cuts through 2026.

Current Market Conditions

As of mid-session, gold was down 3.60%, with a notable liquidation candle observed in the last 30 minutes of trading. Dip-buyers attempted to push prices back above the $5,000 mark, which is now seen as a critical technical level for market sentiment.

Silver also faced challenges, failing to break through a pivotal resistance level at $84. A close below $76 could trigger further declines, contrasting with gold's attempts to recover.

Looking Ahead

Traders are advised to monitor upcoming economic data, particularly the Consumer Price Index (CPI) report, which could influence market flows and exacerbate current trends. The anticipation of inflation data is expected to play a significant role in shaping market sentiment in the near term.

Conclusion

The metals market is currently under pressure, with both gold and silver experiencing significant declines. Traders should remain vigilant and prepared for potential further volatility as economic indicators are released.