Published: Tuesday, February 3, 2026 · 9:41 AM | Updated: Tuesday, February 3, 2026 · 9:41 AM
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Gold prices surged on Tuesday morning, rebounding from two days of heavy selling, with investors appearing to take the opportunity to buy the dip.
Gold futures (GC=F) jumped 6% to $4,936.10, per ounce at the time of writing, while spot gold rose 5.9% to $4,935.69.
The sell-off in gold came after US president Donald Trump named Kevin Warsh as his nomination to be the next Federal Reserve chairman on Friday. This pushed the dollar higher, which weighed on gold prices as a stronger greenback can make bullion more expensive for overseas buyers, given that the precious metal is typically priced in the US currency.
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However, the US dollar index (DX-Y.NYB), which tracks the greenback against a basket of six currencies, edged 0.2% lower on Tuesday morning to 97.46. This has helped support a recovery in gold prices.
ING head of commodities strategy Warren Patterson and commodities strategist Ewa Manthey said in a note on Tuesday that “gold’s fundamental story remains unchanged”.
“The structural drivers – elevated geopolitical risk, macro uncertainty, diversification flows and ongoing central‑bank buying – remain firmly in place,” they said. “Central banks bought less last year but remain key marginal buyers, while current price levels are likely to attract renewed interest.”
Oil prices edged lower on Tuesday, extended losses from the previous session, as signs of de-escalating tensions between the US and Iran eased concerns about potential disruption to supply.
Brent crude (BZ=F) futures dipped 0.2% to $66.18 per barrel in early European trading, while West Texas Intermediate futures (CL=F) were steady at $62.11 a barrel.
Trump said over the weekend that the US would hopefully make a deal with Iran, with the two countries expected to resume nuclear talks on Friday, officials told Reuters on Monday.
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In addition, Trump announced late on Monday that the US and India had agreed a trade deal, seeing Washington cut tariffs on India to 18% from 50%.
Trump said that India’s prime minister Narendra Modi had agreed to stop buying Russian oil.
ING’s Patterson and Manthey said: “If we do see this happen, it will only lead to a further increase in the amount of Russian oil floating at sea. This further pressures the Urals discount to attract buyers. A lack of buyers means Russia would ultimately be forced to reduce output, tightening up the oil market.”
The pound edged 0.1% higher against the dollar (GBPUSD=X) to $1.3682 on Tuesday morning, helped by weakness in the dollar.
In terms of economic data updates, the US Bureau of Labour Statistics announced on Monday that the release of its January job report, which was due out on Friday, would be delayed due to the partial government shutdown.
In a note on Tuesday, Deutsche Bank analysts said: “In the latest on the shutdown, Trump called on House Republicans to immediately pass the funding deal that was approved by the Senate late last week.
Read more: Bank of England set to hold interest rates at 3.75% but cuts loom
“Trump’s intervention came as House speaker Johnson has sought to avoid a push for amendments by conservative Republicans, with a House vote on the package expected today.”
In other currency moves, the pound was steady against the euro (GBPEUR=X) on Tuesday morning, trading at €1.1584 at the time of writing.
More broadly, the FTSE 100 (^FTSE) climbed 0.2% in early European trading to 10,357 points. For more details on market movements check our live coverage here.
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