Gold, silver rates today: Gold and silver prices resumed their bull-run on Tuesday, February 3, recovering part of its recent losses after a sharp reversal from a record-setting downward trajectory.
Spot gold surged as much as 4% to $4,830 an ounce, meanwhile, spot silver also climbed nearly 8% to $82.74, on Tuesday.
Spot gold prices tumbled almost 10% on January 30, marking their sharpest decline since 1983. The drop pushed prices below the landmark $5,000 per ounce level reached just days earlier and erased a large portion of the year’s gains. Silver plunged even worse, falling 27% in the same session—its steepest single-day fall on record.
In the past two trading sessions, gold has slided over 13%, while silver has slumped nearly 34%, in the international markets.
What’s driving the rally in gold and silver?
Analysts believes, as quoted by Reuters, that the decline in precious metals came after an overstretched rally, which lifted prices to a record high of $5,594.82 before pulling back to around $4,700—almost $900 lower. The move was triggered by US President Donald Trump’s nomination of Kevin Warsh as the next Federal Reserve chair, followed by CME Group’s decision to hike margin requirements for precious metals futures.
WisdomTree analysts was quoted as saying by Reuters that the correction may curb speculative buying and open the door for long-term strategic investors to rebalance their positions.
Meanwhile, markets are pricing in two interest rate cuts by the Federal Reserve this year, a factor that should remain supportive for non-yielding gold.
Precious metals had surged to all-time highs last month in a swift run-up that surprised even experienced traders. Strong investor demand was driven by renewed fears around geopolitical tensions, currency debasement, and concerns over the Federal Reserve’s independence. Heavy buying by Chinese speculators amplified the rally, but momentum reversed on Friday as the US dollar strengthened.
According to Bloomberg report, the degree to which Chinese investors step in to buy on declines will be crucial in shaping market direction. Over the weekend, crowds poured into Shenzhen’s largest bullion hub to purchase gold jewellery and bars ahead of the Lunar New Year. China’s markets will shut for a little over a week starting February 16 due to the holiday.
Experts still bullish on Gold
Apurva Sheth, Head of Market Perspectives and Research, SAMCO Securities, believes that gold has witnessed sharp volatility in recent weeks, with narratives quickly emerging to explain the pullback.
“From a price action perspective, the larger trend in gold remains clearly intact. The long-term structure continues to show higher highs and higher lows, and the recent decline looks more like a pause within an ongoing uptrend rather than the start of a reversal. Importantly, prior breakout zones are holding, suggesting that strong hands are still willing to accumulate on dips,” Sheth said.
Meanwhile, on the technical outlook, Ponmudi R, CEO of Enrich Money, said that COMEX Gold is trading near the $4,580–$4,700 key reference zone, cooling off after the sharp spike above $4,900. While the broader market trend remains constructive, the recent vertical rally pushed momentum indicators into overbought territory, leading to heat-driven profit booking and mild price digestion from elevated levels.
“Despite this, prices continue to hold above major moving averages, indicating that the ongoing correction is technical and orderly rather than trend-reversing. Strong buying interest is emerging in the $4,500–$4,400 support band, reinforcing this zone as a critical demand base. A sustained consolidation above this area could set the stage for the next leg higher, with a decisive move above $5,000–$5,100 reopening upside toward prior peaks,” Ponmudi said.
On the silver outlook, Ponmudi added that COMEX Silver is trading around key consolidation points in the $75–$85 zone, after testing record highs above $121.6. The metal remains within a broader rising structure, but the recent move left prices overbought, resulting in sharp rise–sharp fall price action driven by aggressive profit booking.
“Importantly, prices are holding above key moving averages, suggesting the current pause is a healthy consolidation rather than trend exhaustion. Support is placed in the $73–$75 zone, and a sustained breakout above $88–$90 could trigger the next impulsive move toward $100–$105 over the intermediate term. Structural supply deficits and steady industrial demand continue to underpin the bullish bias,” he said.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
