After a brutal three-day "liquidity massacre" that wiped out billions in market value, precious metals in the United States have staged a heroic recovery today. Both Gold and Silver surged significantly as bargain hunters and institutional investors stepped in to "buy the dip," fueled by a partial US government shutdown and new trade developments.
The Price Rebound: Today’s Numbers
As of February 4, 2026, the markets are showing green across the board:
- Gold: After crashing to nearly $4,400 on Monday, spot gold has jumped over 5.2%, trading back near the $4,920 - $4,960 range. This is gold's biggest single-day gain since November 2008.
- Silver: The "White Metal" led the rally with a staggering 9.2% jump, climbing back to $85 per ounce after touching a low of $71 earlier this week.
3 Major Reasons for Today’s Rally
1. The "Bargain Hunting" Frenzy
Analysts suggest that the 30-40% drop seen last week was an "over-correction." Institutional investors viewed the sub-$4,500 gold and sub-$80 silver prices as a massive buying opportunity, leading to heavy "short-covering" and fresh buying.
2. US Government Shutdown & Economic Data Delay
The US Bureau of Labor Statistics (BLS) announced that the crucial January Non-farm Payrolls report will be delayed due to a partial federal government shutdown. This uncertainty has pushed investors back toward "Safe-Haven" assets like gold, as they lack clear data on the US economy's health.
3. The US-India Trade Deal
In a surprise move, President Donald Trump has slashed tariffs on several sectors to 18% (down from 50%) as part of a new US-India trade agreement. This has sparked massive physical demand for gold from Indian buyers, providing a global push to the prices.
The "Kevin Warsh" Factor Settles In
While the initial news of Kevin Warsh being nominated as the next Fed Chair caused the crash (due to fears of a stronger dollar), the market is now digesting the news. Investors now believe that even under Warsh, the Fed will still have to cut rates eventually to support growth, which is a long-term "Bullish" sign for metals.
Technical Outlook: What Next?
- Gold Support/Resistance: Gold has strong support at $4,800. If it crosses $5,100, we could see a quick move back toward $5,500.
- Silver Resistance: Silver faces a tough battle at the $90 mark. A break above this could re-ignite the rally toward $120.