Finance
Gold heads for biggest daily gain since 2008 as investors step in after steep selloff
Published by Global Banking and Finance Review
Posted on February 3, 2026
2 min readLast updated: February 3, 2026
Home > Finance > Gold heads for biggest daily gain since 2008 as investors step in after steep selloff
Quick Summary
Gold prices experience the largest daily gain since 2008 as investors buy after a major selloff. Analysts expect continued bullish trends.
Gold heads for biggest daily gain since 2008 as investors step in after steep...
Gold Market Analysis
By Noel John
Recent Price Movements
Feb 3 (Reuters) - Gold and silver prices rose sharply on Tuesday, with gold set for its biggest daily rise since November 2008, as investors snapped up the metals following their steepest two‑day slump in decades.
Investor Sentiment
Spot gold climbed 5.5% to $4,921.42 an ounce by 0944 GMT. It is bouncing back from a low of $4,403.24 on Monday, while the $5,594.82 per ounce mark touched last week remains a historic peak for now.
Future Projections
U.S. gold futures for April delivery rose 6.3% to $4,945.60 per ounce.
Silver surged 9.2% to $86.7 an ounce on Tuesday, after posting a record 27% one‑day drop on Friday and falling a further 6% on Monday.
"The market was oversold after the announcement of U.S. President Donald Trump to nominate Kevin Warsh as the next Federal Reserve chairman. What we see today is a rebound," said Quantitative Commodity Research analyst Peter Fertig.
"You also see investors who have sold on profit taking are now regarding the prices as attractive again for buying."
While investors expect Warsh to favour rate cuts, they anticipate he will tighten the Fed's balance sheet, a move typically supportive of the dollar.
Meanwhile, CME Group also raised margin requirements on precious metal futures, further weighing on prices.
However, analysts see the yellow metal's bull run continuing and expect it to notch fresh record highs later this year.
"Gold has now cleared its first retracement hurdle at $4,858, shifting focus toward $5,000 — the 50% retracement of the latest slump. For silver, the equivalent levels sit higher at $90.58 and $96.52," said Ole Hansen, head of commodity strategy at Saxo Bank.
Meanwhile, the U.S. Bureau of Labor Statistics said on Monday the closely-watched employment report for January would not be released this Friday due to a partial shutdown of the federal government.
In other metals, spot platinum climbed 5.3% to $2,233.95 per ounce after hitting a record high of $2,918.80 on January 26, while palladium was up 4.2% at $1,792.35.
(Reporting by Noel John in Bengaluru; Editing by Ronojoy Mazumdar)
Key Takeaways
- •Gold prices see largest daily increase since 2008.
- •Investors buy gold after a significant two-day slump.
- •Gold futures for April delivery rise by 6.3%.
- •Silver prices also experience a significant surge.
- •Analysts predict continued bullish trend for gold.
Frequently Asked Questions about Gold heads for biggest daily gain since 2008 as investors step in after steep selloff
1What is spot gold?
Spot gold refers to the current market price at which gold can be bought or sold for immediate delivery. It is a key indicator of the gold market's performance.
2What are gold futures?
Gold futures are contracts to buy or sell gold at a predetermined price at a specified time in the future. They are used for hedging or speculative purposes.
3What is investor sentiment?
Investor sentiment is the overall attitude of investors toward a particular security or financial market. It can influence market trends and price movements.
4What is a margin requirement?
A margin requirement is the minimum amount of equity that an investor must maintain in their margin account to cover potential losses.
5What is a bull run in the context of gold?
A bull run refers to a period during which the price of gold is rising or expected to rise, often driven by increased demand or favorable market conditions.
