Gold extended losses on Feb. 2 as a firmer U.S. dollar and market reaction to U.S. President Donald Trump’s Fed chair pick, Kevin Warsh, pressured bullion. Spot gold was down 1.5% at $4,793.97 per ounce as of 0046 GMT, while silver recovered from a more‑than‑three‑week low hit on Friday, according to Reuters.

  • Price: Spot gold $4,793.97 per ounce (down 1.5%)
  • Date and source: Feb 2, Reuters; price quoted at 0046 GMT
  • Drivers: firmer U.S. dollar and investor assessment of Kevin Warsh’s stance on rate cuts
  • Silver: off its more‑than‑three‑week low and in partial recovery

Context: where this sits in current precious‑metal flows

The pullback reflects the classic inverse relationship between a stronger dollar and bullion demand: a firmer currency raises the local cost of holding non‑dollar assets and alters the calculus for safe‑haven purchases. For the trade, the move is not about jewellery design trends but about input cost volatility — the price that manufacturers, refineries and retailers use to value raw bullion, whether for satin‑finished wedding bands or substantial‑heft chains.

Market attention on a nominee to the U.S. central bank is translating into near‑term repricing rather than structural change. That repricing compresses the window for profitable forward purchases and can affect the attractiveness of holding physical inventories versus hedged positions.

Impact: what U.S. retailers, wholesalers and investors should do

For U.S. jewellery businesses, a 1.5% move in spot gold within a single session changes margin math on high‑gold‑content SKUs. Buyers should review cost assumptions on pieces where the metal accounts for a significant portion of landed cost — for example, knife‑edge shank rings, open‑backed settings with heavy mounts, or fully‑cast chains with substantial heft. Consider tightening inventory cadence, staging forward purchases, or increasing the use of buy‑outs and supplier hedges to limit short‑term exposure.

Merchandising and pricing communication should emphasise material quality and provenance without overpromising on price stability. For investors and higher‑level buyers, swings tied to currency and policy signals underscore the role of hedging and the need to separate short‑term volatility from longer‑term allocations to precious metals.

Silver’s partial recovery offers a secondary consideration for merchants who cross‑merchandise mixed‑metal looks: shifts between yellow‑gold and silver‑accent goods can soften margin pressure, but only if sourcing and SKU mix are actively managed as prices move.

Image Referance: https://www.msn.com/en-us/money/markets/gold-falls-1-5-on-firm-dollar-silver-recovers-from-over-three-week-low/ar-AA1VsjtP