LONDON, February 3, 2026, 10:59 (GMT) — Regular session
- Spot gold surged 5.5% to roughly $4,921 an ounce, marking its largest single-day jump since November 2008
- The rebound comes after two days of losses driven by increased futures margins and changing rate forecasts
- Traders are eyeing a revised schedule for U.S. jobs data following delays caused by the shutdown
Gold prices surged on Tuesday, with spot bullion climbing 5.5% to $4,921.42 an ounce by 0944 GMT. U.S. April futures followed suit, rising 6.3% to $4,945.60, after the metal touched a nearly one-month low of $4,403.24 just a day before. Silver jumped 9.2% to $86.7. “The market was oversold,” said Peter Fertig of Quantitative Commodity Research. Ole Hansen at Saxo Bank flagged $5,000 as the next key resistance level. Reuters
The bounce is significant because the rapid selloff wiped out leveraged positions. Margin acts as collateral, so when exchanges hike it, traders must either come up with cash or scale back their risk.
The selloff kicked off after Donald Trump picked Kevin Warsh to replace Jerome Powell as Federal Reserve chair in May, while CME Group hiked margin requirements on precious-metal contracts. Spot gold plunged 4.8% to $4,630.59 Monday afternoon in New York, after earlier plunging nearly 10%. That followed a 9.8% slide on Jan. 30 from the Jan. 29 record high of $5,594.82. John Meyer at SP Angel described it as a “rollercoaster ride,” and Michael Hsueh at Deutsche Bank said the market was “not primed” for a steady rebound. Reuters
Analysts remain bullish over the long term, even as near-term volatility looms. Independent analyst Ross Norman described the recent drop as a “significant correction.” Tai Wong added the market might need time to stabilize before mounting another advance. Giovanni Staunovo from UBS expects gold to hit a new high above $6,200 later this year. J.P. Morgan forecasts $6,300, while Deutsche Bank sticks to its $6,000 target. Meanwhile, Fawad Razaqzada of City Index and FOREX.com cautioned it’s “far too early” to declare gold has bottomed out. Reuters
Tuesday’s bounce came off what looked like bargain hunting, sparked by forced selling following profit-taking. Traders are wrestling with what a Fed under Warsh could bring: rate cuts on one side, but tighter balance-sheet moves on the other — a combination that could keep the dollar supported.
That leaves the rebound on shaky ground. A stronger dollar usually pressures bullion, pushing prices up for buyers dealing in other currencies. At the same time, increased margins restrict the leverage that boosted the rally.
Gold has proven it can swing by hundreds of dollars in a single session. Should liquidations resurface or investors continue exiting metal funds, Tuesday’s spike might vanish fast, pushing prices back toward Monday’s lows.
Traders are keeping an eye on silver’s rebound following last week’s historic plunge, gauging if demand is extending past quick speculative trades into more durable, long-term investments.
The U.S. January jobs report, originally set for Friday, February 6, won’t arrive on time due to a partial government shutdown, the Department of Labor announced. The Bureau of Labor Statistics will provide a new release date once funding is back in place.
For now, the market is watching two key near-term triggers: progress on the shutdown and the Fed chair nomination, plus gold’s ability to stay above recent support and push back toward $5,000.
