Gold Consolidating Over $5K, Silver Holding On To $80

After bursting back above the crucial $5,000 level Sunday night, gold continues to consolidate above the level, after briefly trading above $5,100 Tuesday.

News that China is instructing its banks to sell US Treasury bonds should keep a strong bid beneath gold prices, as the market increasingly comes to the realization that a major devaluation of the USD is likely.


Silver also continues to consolidate above $80 after rallying as high as $84 Monday night.

Silver has traded in a tight range between $80-$84 since Sunday night’s open saw prices gap above $80.  If we had told you a year ago that silver would be consolidating between $80-$84 in Feb of 2026 no one would have believed us.   And yet, sentiment couldn’t be much worse in the sector- as everyone is apparently convinced that the bull market has ended. 
That’s a very good sign that silver might not be done just yet. 

After a $20 vertical move off of last Thursday night’s lows near $64, we would not be surprised to see a bit of a pullback overnight or tomorrow, should the $80 fail. A consolidation near $80 is a great sign however- particularly with practically everyone expecting another severe smackdown and sell-off next week when China closes for Chinese New Year.


Keep an eye on silver lease rates, the 1-month rate spiked back up from zero to over 6% yesterday, before falling back to 2.69% Tuesday. 


Anything above 0% indicates a physical tightness in the silver market. 

The Shanghai Silver Premium has also narrowed substantially the past 2 days, with the spread between Western and Chinese silver prices now the narrowest it has been since before Christmas. 

With China getting ready to shut down for 9 days from Feb 15-23, COMEX and the LBMA are set to regain their control over global silver markets- even if its just temporarily.