Gold extends rally, jumps over 2% after best day since 2008
A weaker US dollar makes greenback-priced bullion more affordable for holders of other currencies
Published Wed, Feb 4, 2026 · 10:01 AM
Gold prices climbed more than 2 per cent on Wednesday (Feb 4), building on their best day since 2008 in the previous session, as bargain-hunting and a softer US dollar supported bullion.
Spot gold was up 2.2 per cent at US$5,044.74 per ounce, as at 9.12 am, after gaining 5.9 per cent on Tuesday, its biggest daily gain since November 2008. Bullion scaled a record high of US$5,594.82 last Thursday.
US gold futures for April delivery climbed 2.7 per cent to US$5,067.0 per ounce.
The US dollar fell against most major currencies except the yen on Tuesday, as traders consolidated recent gains fuelled by upbeat US data and expectations of a less-dovish Federal Reserve.
A weaker US dollar makes greenback-priced bullion more affordable for holders of other currencies.
US President Donald Trump on Tuesday signed a spending deal into law that ends a partial US government shutdown.
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The closely watched employment report for January will not be released this Friday because of the partial shutdown.
Investors are ramping up bets on higher long-dated Treasury yields and a steeper yield curve as incoming US Federal Reserve chair Kevin Warsh is expected to press for interest rate cuts while shrinking the US central bank’s balance sheet.
Investors expect at least two Fed interest rate cuts in 2026 and await ADP private payroll data later in the day for more cues into the Fed’s policy path. Non-yielding bullion tends to perform better in low-interest-rate environments.
The current wave is expected to be sharp, probably to surge into the US$4,950 to US$5,198 range, Reuters technical analyst Wang Tao said.
Spot silver rose 2.1 per cent to US$86.92 an ounce. It touched a record high of US$121.64 on Thursday.
Spot platinum added 2.3 per cent to US$2,260.50 per ounce after hitting an all-time high of US$2,918.80 on Jan 26, while palladium gained nearly 3 per cent at US$1,782.85. REUTERS
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