Gold and silver prices bounce back from recent selloff
By Michele Maatouk
Date: Tuesday 03 Feb 2026
(Sharecast News) - Gold and silver prices bounced back on Tuesday from the recent heavy selloff, with the yellow metal on track for its biggest daily gain since 2008.
At 1140 GMT, spot gold was up 5.4% at $4,916.22, while silver was 8.6% firmer at $86.24. Last Friday, US President Donald Trump's nomination of former Fed governor Kevin Warsh as the next chair of the Federal Reserve sparked a rise in the dollar and considerable selloff in the price of both precious metals.
Susannah Streeter, chief investment strategist at Wealth Club, said: "Bargain hunters have been out in force, buying up precious metals after the dramatic fall in prices. Gold and silver are in recovery mode but are still cooler than the hot records reached last week.
"Gold is around 12% lower, and silver is 28% below its peak, but compared to this time last year, the rise has still been remarkable. Safe haven demand is still strong, given the erratic policymaking from the White House, and fractious geopolitical relations."
Russ Mould, investment director at AJ Bell, also pointed to the fact that investors were buying the dip, "scooping up the precious metal in their droves and making it sparkle again".
"Gold has delivered such strong rewards to investors over the past year that many people will have treated the recent sell-off as a New Year's sale, a chance to grab more metal at a discounted price. Gold bugs have doubled down rather than run for the hills," he said.
Emma Wall, chief investment strategist at Hargreaves Lansdown, noted it's been a rollercoaster start to the year for both gold and silver, with gold rising near 30% to $5,500 on 29 January, driven by concerns about global geopolitics, US Fed independence and President Donald Trump's endorsement of the weak dollar.
However, the precious metals sold off when Warsh's nomination for Fed chair was announced.
Wall said: "The market is reading Warsh's nomination as a sign of rate stability - and potentially a higher for longer stance, based on his voting record. We consider his recent rhetoric to be more informing. He has spoken publicly against current levels, saying that rates should be lower, which is more in tune with Trump's beliefs, hence the nomination.
"Where does gold go from here? We don't expect yesterday's rally to continue with as sharp a trajectory of recent history, but we do think that gold has an important role to play in portfolios this year. There are both systemic and tactical tailwinds - global central bank buying looks set to continue, propping up base demand and the safe haven appeal of gold in times of uncertainty remains whilst global diplomacy is conducted via social media."
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