Gold Rises Toward $5,100 as Markets Regain Momentum

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 4, 2026

Key Moments

Gold futures (GC=F) climbed 3.4% to $5,102.60 a troy ounce, while spot prices advanced 3.2% to $5,087.02.
Brent crude (BZ=F) futures edged up 0.2% to $67.45 a barrel, with West Texas Intermediate (CL=F) rising 0.4% to $63.49.
The pound strengthened to $1.3724 against the dollar and €1.1600 against the euro as markets looked ahead to the Bank of England’s rate decision.

Gold Price Action After Historic Volatility

Gold extended its recovery for a second straight session on Wednesday as investors moved back into precious metals following one of the sharpest sell-offs in decades, supported in part by a softer US dollar.

Gold futures (GC=F) advanced 3.4% to $5,102.60 per troy ounce, with spot prices higher by 3.2% at $5,087.02 at the time of writing.

The metal had surged to an all-time high of $5,594.82 last Thursday before suffering its largest one-day decline since 1983, sliding more than 9% on Friday. That was followed by an additional 1.9% drop on Monday.

Market participants attributed the latest rebound to renewed demand after several analysts in the City argued that the earlier sell-off had overshot and that the broader uptrend remained intact.

Analysts at Jefferies said: “The path of least resistance for commodities and mining shares is still mostly higher in an environment where investors and central banks globally are actively reallocating capital en masse to real assets due to macro factors … our point? Buy the dip.”

Despite the recent turbulence, gold (GC=F) is still more than 60% higher over the past year.

In a note published after Monday’s rout, Joni Teves, precious metals strategist at UBS, wrote: “Is the gold rally over? Our short answer is no.”

UBS has forecast that gold (GC=F) could reach $6,200 later this year.

“After plunging from record highs amid elevated volatility, precious metals attracted renewed buying interest,” ING Bank analysts Warren Patterson and Ewa Manthey wrote in a note.

“Safe haven demand is among factors that will remain supportive of gold prices over the medium term,” they said.

Asset	Contract / Pair	Latest Level	Move
Gold Futures	GC=F	$5,102.60 / oz	+3.4%
Gold Spot	–	$5,087.02 / oz	+3.2%
Brent Crude	BZ=F	$67.45 / barrel	+0.2%
WTI Crude	CL=F	$63.49 / barrel	+0.4%
GBP/USD	GBPUSD=X	$1.3724	+0.2%
GBP/EUR	GBPEUR=X	€1.1600	+0.1%
US Dollar Index	DX-Y.NYB	97.37	-0.1%
FTSE 100	^FTSE	10,383 points	+0.6%

Oil Gains on Geopolitical Tensions and Inventory Draw

Crude prices moved higher on Wednesday, building on the previous session’s advance as traders assessed renewed concerns about a potential escalation in tensions between Washington and Tehran.

Brent crude (BZ=F) futures were up 0.2% at $67.45 a barrel, while West Texas Intermediate (CL=F) added 0.4% to trade at $63.49 a barrel at the time of writing.

The latest uptick followed a statement from the US military on Tuesday that it had downed an Iranian drone that had “aggressively” approached the Abraham Lincoln aircraft carrier in the Arabian Sea.

“These security events raise the geopolitical temperature and resurface fears of oil supply disruptions. The Straits of Hormuz is a critical transit corridor, accounting for 20% of the world’s petroleum liquids consumption,” Nikos Tzabouras, analyst at FXCM wrote.

Additional support for crude came from industry data signaling a significant drop in US oil inventories. Stockpiles in the United States, described as the world’s largest producing and consuming nation, fell by more than 11 million barrels last week, according to sources citing figures from the American Petroleum Institute.

Gold has rebounded to around $5,100!
Supported by safe-haven demand as tensions between the US and Iran resurface, coming just a day after the metal posted its strongest single day gain in more than 17 years.#gold #safehaven #commodities #inflation #geopolitics #markets… pic.twitter.com/RJfvcTaaUW
— Capital.com International (@capitalcom) February 4, 2026

Sterling Firms Ahead of Bank of England Decision

The pound edged higher on Wednesday against major counterparts as investors positioned ahead of the Bank of England’s interest rate announcement scheduled for Thursday.

Sterling gained 0.2% versus the US dollar, trading at $1.3724, and ticked up 0.1% against the euro to €1.1600.

The US dollar index (DX-Y.NYB), which tracks the greenback against a basket of six leading currencies, slipped 0.1% to 97.37.

Market pricing indicates expectations that the Bank of England will leave its benchmark rate unchanged at 3.75% on Thursday, with the possibility of one or two rate cuts later in the year.

“Markets now think the Bank of England will wait until probably the May policy meeting before cutting rates further,” said Lee Hardman, senior currency analyst at Japanese bank MUFG. “I think that delayed expectations for the Bank of England rate cuts is helping the pound to strengthen.”