Gold Rebounds as Markets Regain Footing After Fed Shock

Written by Sandra Leggero

Sandra Leggero has a background in financial markets, having spent more than 9 years in commodities trading for several European and Asian companies. She holds a degree in Economics from the University of Pavia and specializes in emerging markets.

, | Updated: February 3, 2026

Key Moments

Spot gold climbed 5.1 percent to $4,897.40 an ounce in Asian trading following a steep prior sell-off
U.S. gold futures advanced 5.6 percent to $4,913.81 even as the dollar strengthened
The U.S. Bureau of Labor Statistics reported delays to the December JOLTs data and the January Jobs Report due to a partial government shutdown

Gold Prices Stage Strong Recovery

Gold prices moved higher on Tuesday, bouncing back after a pronounced decline that had been sparked by the nomination of Kevin Warsh as head of the U.S. Federal Reserve.

In Asian trading, spot gold rose 5.1 percent to $4,897.40 per ounce, signaling a significant recovery from the earlier sharp drop. U.S. gold futures also gained ground, adding 5.6 percent to reach $4,913.81, a move that came despite the headwind of a firmer U.S. dollar.

Market Drivers and Risk Outlook

According to analysts, the core factors that typically drive bullion prices remain in place, suggesting that the recent slump was driven more by short-term influences than by changes in broader fundamentals.

However, market strategists cautioned that the risk of renewed selling has not disappeared. They indicated that additional liquidation pressures are expected to surface only if gold prices fall below last week’s lows.

Key Price Levels

Instrument	Price	Move
Spot gold	$4,897.40/oz	+5.1 percent
U.S. gold futures	$4,913.81	+5.6 percent

Dollar Strength and Macro Backdrop

The U.S. dollar retained its recent gains after the release of positive U.S. manufacturing data. That data helped curb expectations among investors that the U.S. Federal Reserve would cut interest rates in the coming months.

At the same time, investors monitored developments in Washington, where reports suggested that the House of Representatives is likely to approve a funding bill intended to end the ongoing government shutdown.

Data Delays from Partial Government Shutdown

Despite progress on the funding front, the U.S. Bureau of Labor Statistics (BLS) stated that the partial government shutdown will lead to delays in the release of key labor market indicators. Specifically, the BLS said that the December Job Openings and Labor Turnover Survey (JOLTs) data and Friday’s January Jobs Report will be postponed.