NEW YORK, Feb. 3, 2026 — Gold prices surged on Tuesday after a sharp selloff had pushed bullion to its weakest levels in weeks, with silver and other metals also rallying as buyers stepped back into the market. Spot gold climbed sharply, gaining more than five percent as trading progressed, while U.S. futures followed with similar strength as investors moved quickly to take advantage of lower prices. The rally marked a sharp reversal from recent sessions that had been defined by intense selling and wide intraday swings. Silver advanced even more aggressively, posting double-digit gains after suffering one of its steepest drops in years just days earlier. Platinum and palladium also moved higher, reinforcing the sense that buying interest had returned across the metals complex rather than remaining confined to gold alone.

Trigger and Market Context

The rebound followed a period of exceptional volatility that had erased a sizable portion of gold’s gains from record highs reached late last week. Prices had tumbled rapidly as markets digested a series of developments that altered expectations and forced leveraged positions to unwind. The selloff gathered pace through Friday and extended into Monday, leaving gold and silver sharply lower before stabilizing and reversing course.

Policy Shifts and Positioning: One catalyst behind the decline was a shift in expectations tied to U.S. monetary policy leadership, which triggered a reassessment of risk and prompted traders to reduce exposure. That move coincided with higher margin requirements set by major exchanges, which compounded selling by increasing the cost of holding leveraged positions. As a result, liquidation accelerated and pushed prices well below recent highs, setting the stage for a rebound once selling pressure eased.

Volatility Amplified by Thin Data Flow: Market conditions were further shaped by the absence of major U.S. economic releases, which reduced directional signals and left price action driven largely by positioning and technical factors. Without fresh data to anchor sentiment, swings became more pronounced as traders reacted to price moves themselves. This environment contributed to exaggerated declines, followed by an equally forceful recovery once buyers re-entered at lower levels.

Bargain Buying Lifts Prices

Traders said bargain hunting played a central role in Tuesday’s rally, with many viewing the earlier selloff as excessive given how far prices had fallen in a short period. Technical indicators that had moved deep into oversold territory drew interest from both short-term traders and longer-term investors seeking entry points. Buying gathered pace as gold held above recent lows, triggering follow-through demand that carried prices higher through the session. Silver’s rebound stood out after heavy selling in prior sessions, with traders quickly rebuilding positions once prices stabilized.

Broader Metals Participation

Gains across platinum and palladium underscored the breadth of the rebound and suggested that market participants were repositioning across metals rather than focusing on a single asset. This broader participation helped reinforce momentum and added to the sense that selling had run its course, at least in the near term. Futures markets in Asia and Europe echoed these moves, with contracts posting strong recoveries after opening the week under heavy strain.

Outlook Remains Volatile

Despite the sharp rebound, analysts cautioned that markets remain prone to abrupt shifts as traders continue to assess positioning and incoming signals. Recent price action highlighted how quickly sentiment can turn when markets are crowded and leverage is high. Further swings cannot be ruled out as participants weigh technical levels against evolving policy expectations. For now, gold’s rebound reflects a market adjusting after an intense selloff, with metals prices recalibrating as buyers and sellers test new ground.