U.S. Stocks Climb as Gold and Silver Prices Keep Falling

U.S. stocks rallied as major indexes rose amid market volatility, while gold and silver prices continued sliding from recent highs — reflecting investor rotation back into equities and sharp retracement in precious metals.

By Robert Kim – Staff Correspondent

Last Updated: Feb. 1, 2026

Major Indexes Advance on Optimism

U.S. stock markets climbed on Monday as traders responded to a mix of earnings news and broader market sentiment that favored equities over commodities. The S&P 500 rose about 0.5%, the Dow Jones Industrial Average added roughly 1.1%, and the tech‑heavy Nasdaq Composite gained around 0.6%, boosted by strong performance from certain technology and growth names including Sandisk, which surged on robust demand tied to artificial intelligence applications. Despite weakness in some large cap tech stocks such as Nvidia, the overall market move reflected renewed confidence among investors in equities following recent volatility. :contentReference[oaicite:1]{index=1}

Gold Prices Slide Further

Gold continued to trade lower, extending losses from last week’s sell‑off. Spot gold prices dropped around 1.9% to below $4,700 per ounce, reflecting waning safe‑haven demand as money rotated back into stocks. The drop in gold pricing followed broader sharp declines in precious metals markets and was influenced by factors including expectations of tighter monetary policy and a stronger U.S. dollar. This continued slide in gold stands in contrast to its earlier rally, highlighting how quickly investor sentiment can shift in turbulent markets. :contentReference[oaicite:2]{index=2}

Silver also Weakens Amid Rotation

Silver prices also fell alongside gold, with spot prices declining roughly 1.9% as traders continued to pare back positions in precious metals. Like gold, silver’s retreat from prior highs was driven in part by a shift in investor focus toward equities and away from non‑yielding assets. The decline in silver prices also underscored the broader unwind of recent speculative rallies in precious metals, contributing to a recalibration of risk assets. :contentReference[oaicite:3]{index=3}

Sector Leaders and Market Breadth

While precious metals lagged, strength in other sectors helped propel stocks higher. Travel and leisure names, such as Carnival and United Airlines, saw notable gains as oil prices dipped, reducing cost pressures for the industry. Meanwhile, positive earnings in select tech and industrial companies contributed to the overall rally, illustrating a mixed but generally favorable tone in U.S. markets despite ongoing concerns about inflation and interest rates. :contentReference[oaicite:4]{index=4}

Investor Outlook and Market Dynamics

Analysts suggest that the interplay between falling commodity prices and rising equities reflects a broader market rotation as investors seek returns from equities after recent turbulence in commodities. With upcoming earnings reports and economic data releases on the horizon, traders remain attentive to shifts in growth expectations and monetary policy signals. This dynamic environment could continue to produce volatility, underscoring the importance of strategic asset allocation amid changing global market conditions. :contentReference[oaicite:5]{index=5}