Finance
Gold set for biggest daily gain since 2008 as investors rush back after selloff
Published by Global Banking & Finance Review®
Posted on February 3, 2026
2 min readLast updated: February 3, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on February 3, 2026
2 min readLast updated: February 3, 2026
Gold prices experience the largest daily gain since 2008 as investors buy after a major selloff. Analysts expect continued bullish trends.
By Noel John
Feb 3 (Reuters) - Gold and silver prices rose sharply on Tuesday, with bullion set for its biggest daily rise since November 2008, as investors snapped up the metals following their steepest two‑day slump in decades.
Spot gold climbed 5.3% to $4,913.59 an ounce by 1234 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.
U.S. gold futures for April delivery rose 6.1% to $4,936.20 per ounce.
Silver surged 9% to $86.60 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 5.4% to $2,235 per ounce after hitting a record high of $2,918.80 on January 26, while palladium was up 4.8% at $1,801.50.
(Reporting by Noel John in Bengaluru; Editing by Ronojoy Mazumdar and Leroy Leo)
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.
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.
Investor sentiment is the overall attitude of investors toward a particular security or financial market. It can influence market trends and price movements.
A margin requirement is the minimum amount of equity that an investor must maintain in their margin account to cover potential losses.
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.
Explore more articles in the Finance category