Gold Recovers, Markets Steady: 2026-02-04

[Para 1: The Lead] Gold prices recovered, stabilizing near $4,950 per ounce as of early trading on February 4, 2026, following a significant retreat from record highs. The precious metal, which had climbed over 6% the previous session, saw dip buyers step in, bolstering its stance despite a risk-on market tone and a weakening US dollar. This recovery marks a shift from the previous week's volatility, where gold and silver experienced record declines. [Para 2-3: Supporting details & Context] Silver also steadied, with gold up nearly 15% for the year, despite a 12% drop from its all-time high on January 29. Analysts at TD Securities noted that forced sales in precious metals have likely run their course, attributing recent volatility to intense market fluctuations. The Federal Reserve's independence and geopolitical factors fueled the initial rally, which now faces a recalibration. Bank of America Corp. predicts elevated volatility in precious metals markets but maintains a positive outlook for gold, forecasting it to rally to $6,000 an ounce. This recovery is driven by sustained investor interest, despite short-term price fluctuations.