Gold rebounds sharply after sell-off, jumps over 5% as market sentiment shifts

2026-02-03 - 10:15

Gold prices rebounded strongly on Tuesday following a period of heavy selling pressure in global markets. Spot gold surged over 5.7% to reach $4,926.4 per ounce by 0755 GMT, recovering from sharp declines on Friday and Monday that had pushed the metal briefly below the $4,500 level. The recovery comes after President Donald Trump's announcement on Monday that he has selected former Federal Reserve Governor Kevin Warsh as his nominee for the next Fed chair—a move that initially contributed to market volatility and a sell-off in precious metals. Silver also regained ground, rising 9.3% to $86.6 per ounce in tandem with gold's rebound. Market Context The precious metals market has experienced significant fluctuations recently, with gold's dramatic rally over the past year facing periodic corrections. Tuesday's bounce suggests continued underlying demand for safe-haven assets despite intermittent profit-taking and reactions to U.S. monetary policy developments.