Sevens Report: Gold and Silver Drop After Unsustainable Parabolic Run
Tom Essaye says last month’s precious-metals surge broke under its own weight.
Gold, silver losses ease after ‘disturbing’ safe haven sell-off
Gold and silver prices stabilized Monday after a violent selloff that reversed a parabolic rally and caught many investors off guard. According to Sevens Report Research founder Tom Essaye, the breakdown was inevitable given how stretched prices had become.
Essaye said the speed and magnitude of last week’s gains left the precious metals market vulnerable to a sharp correction. Once selling began, momentum flipped quickly as traders recognized that the recent advance was detached from sustainable fundamentals.
While the move was dramatic, Sevens views it as a technical reset rather than a signal that the broader bullish case for precious metals is broken. The firm has consistently cautioned that steep, momentum-driven rallies often end abruptly once confidence cracks, especially in crowded trades.
From here, price stability and consolidation will be key in determining whether gold and silver can rebuild upside momentum or remain vulnerable to additional volatility.
Also, click here to view the full article published in Yahoo Finance on February 2nd, 2026. However, to see the Sevens Report’s full comments on the current market environment sign up here.
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