Gold Rebounds 4.2% After Steepest Drop in Over a Decade

Gold surged as much as 4.2% to $4,855 an ounce on February 3, 2026, recovering some ground after a historic two-day 13% selloff—the steepest slump in more than a decade. Silver jumped 8.1% to over $85 an ounce, following a 7% drop the prior session and a record intraday plunge on January 30. The rally reversal was fueled by renewed safe-haven demand amid geopolitical tensions, fears of currency debasement, and concerns over Federal Reserve independence, amplified by speculative buying from Chinese investors. However, a stronger U.S. dollar triggered a sharp unwind last week. Chinese state-owned banks are now tightening gold investment controls ahead of the Lunar New Year holiday, which begins February 16. Deutsche Bank maintains its $6,000 gold price target, while markets watch for potential Iran nuclear deal progress that could dampen safe-haven demand.