Global gold prices surged sharply in Wednesday’s trading (February 4), reclaiming the key US$5,000 level. The rally was supported by bargain hunting activity and a weaker US dollar, which made the precious metal more attractive to global investors.
According to Reuters, spot gold jumped 2.2% to US$5,044.74 per ounce, while gold futures climbed 2.7% to US$5,067.00.
Other precious metals also recorded solid gains. Spot silver rose 2.1% to US$86.92, platinum advanced 2.3% to US$2,260.50, and palladium surged nearly 3% to US$1,782.85.
The surge in gold prices came as the US dollar weakened, prompting investors to consolidate positions after the dollar’s previous rally, which had been fueled by strong economic data and expectations of a less dovish stance from the Federal Reserve (Fed).
A softer dollar makes gold, which is priced in greenbacks, cheaper for holders of other currencies, thereby boosting demand.
Meanwhile, US President Donald Trump has signed a spending bill that ended the partial US government shutdown. However, the closely watched employment report will not be released this week due to disruptions during the shutdown period.
At the same time, investors have increased bets on higher long-term US Treasury yields and a steeper yield curve. Kevin Warsh, the nominee for Fed Chair, is expected to support interest rate cuts while continuing the central bank’s balance sheet reduction.
Market participants are currently pricing in at least two Fed rate cuts in 2026 and are awaiting private-sector employment data for further clues on the future direction of monetary policy. As a non-yielding asset, gold tends to perform better in a low-interest-rate environment.