The price of gold futures per troy ounce (31.1 grams) in commodity markets has slightly decreased. Thus, on the New York COMEX commodity exchange, the price of February 2026 gold futures per troy ounce decreased by 1.39% to 4 882.1 US dollars.
Following a record increase, a downward trend in gold and silver prices has been observed since the end of January, as well as at the end of last week.
It is interesting to know what the reasons for the decline in gold and silver prices are, and whether this trend might continue in the near future?
In a statement to Modern.az, economist Khalid Karimli, clarifying the issue of price changes in the commodity market, recalled that the price of gold increased by approximately 65 percent during 2025.
“Overall, in recent years, especially compared to 2020, gold has been sold at higher prices, and the rate of increase has been rapid. There were several reasons for the rise in gold prices, and most of these factors continue to remain relevant. More precisely, the main factors have not yet been fully eliminated.
The main reasons have been global risks and international tensions. The US president's policy aimed at weakening the dollar, and the Federal Reserve System's (FED) lowering of interest rates, have fueled speculation about the dollar's depreciation. Against this backdrop, gold has become a focus for investors as a safe-haven asset. Increased interest in gold from both individual and institutional investors, along with expectations generated by the price increase itself, led to massive purchases, and consequently, the price of gold rose continuously”.
According to the economist, movement in stock markets is never solely in the direction of continuous growth:
“After massive rallies, a correction phase usually begins. During this time, speculative investors and large financial institutions, in particular, sell their assets to take profits. Mass sales, in turn, cause the value of investment instruments to temporarily decrease.
Some events that occurred at the end of last week further intensified the correction in the gold market. The price of gold sharply declined. One of the main reasons for this was the market's expectations regarding the next head of the FED. It was anticipated in the markets that Kevin Hassett would be put forward as a potential candidate for the FED, and that he would pursue a policy of a cheaper dollar and softer interest rates.
However, contrary to market expectations, US President Donald Trump announced that he was nominating Kevin Warsh, an experienced and influential economist who held a high position at the FED from 2007-2010. This decision marked a turning point in the markets. Kevin Warsh's nomination increased the dollar's value and weakened expectations of a sharp depreciation of the dollar. At the same time, confidence in the preservation of the FED's independence strengthened.
Against the backdrop of the dollar's appreciation, the price of several alternative assets, including gold, fell. In parallel, Trump's statements regarding Iran's return to the negotiating table and the start of real talks reduced global risks. All these factors combined led to a sharp correction in the price of gold”.
X. Karimli added that the current decline does not mean that the price of gold, as well as silver, will fall in the long term and continuously:
“Such a sharp correction was not expected in the markets, and this situation created unexpected financial losses, especially for individual investors.
However, it is normal for prices to change within seconds in stock markets. The main focus should not be on daily or short-term fluctuations, but on annual, six-month, or 100-day trends”.
The economist also noted that despite the correction that occurred this year, gold is expected to remain at a high price level:
“According to forecasts for gold, the price is expected to be in the range of 5,400-6,000 dollars. These are just forecasts, but general expectations are mainly towards an increase.
It should be noted that ordinary citizens are not short-term stock traders and do not try to make a profit through daily buying and selling. From this perspective, general expectations that gold will remain at high prices in the long term still exist”.
