The Great Rebound: Gold Recover 6% as ‘Bargain Hunting’ Spreads

Last Updated on February 3, 2026 by Deon

A Breathless Recovery: Gold’s Best Day Since the Financial Crisis

In a surprising turn of events, the “Yellow Metal” came roaring back to life on Tuesday February 3,2026. Once the two-day fright had subsided — during which Gold had shed almost $1,000 off its peak — the yellow metal shot up more than 6% to close at about $4950 an ounce.

This isn’t just any old bounce — this could be on its way to being Gold’s most powerful single-day gain since the depths of the financial catastrophe that was 2008. Here is why the “dip buyers” are on the march again, and what has been driving this latest bout of volatility.

‘The ‘Warsh Effect’ Gets a Reality Check

That first plunge Monday to $4,405 was set off by the announcement on Friday that Kevin Warsh would be nominated as the next Chair of the Fed. That “hawk” had the Dollar shooting higher and Gold tanking, but people are now adjusting their views.

The Nuance: Although Warsh is seen as more hawkish on the Fed’s balance sheet, investors believe he would ultimately embrace rate cuts if growth were to cool.

Institutional Cool: With the big banks (JPMorgan, Deutsche Bank) using the flush to double down on their $6,000+ targets, it’s clear that we are dealing with more of a “Warsh Shock” here, rather than a tectonic shift in market reality.

‘Flying Blind’: The NFP Jobs Data Blackout

Also contributing to the market’s confusion is data fog of a significant kind. The US Bureau of Labor Statistics (BLS) announced Monday that the January Nonfarm Payrolls (NFP) report, due this Friday, would be postponed indefinitely.

The Shutdown: An incomplete federal-government shutdown has sidelined the government’s best sources of economic information.

Market Impact: Jobless data was the “gold standard” for traders and now they are flying blind. This unknown frequently forces investors towards Gold as some form of protection against the great…unknown…and that’s why we’re seeing such a huge bounce today.

Geopolitics: From Concerns of Annexation to Nuclear Talks

The global backdrop continues to be highly volatile and supportive for safe-haven plays.

The Iran Summit: This Friday the 6th of February high-level discussions between the US and Iran will take place. Any hint of de-escalation could dampen the market, but for now “pre-summit jitters” are keeping buyers busy.

Ukraine Update: Renewed peace talks are in the works as fresh Russian strikes prompt Ukraine to prepare. The continued chaos in Europe is a key factor forcing central banks, particularly those in Asia to continue their purchases of Gold reserves.

The Verdict: Oh Wait, Is the $5,600 Peak Back on the Table?

Tuesday’s 6% spike has erased a chunk of the “Flash Crash” losses last week. While still technically “bruised”, the strong rebound implies that the long view bulls have for Gold — of debt, diplomacy, and trust factors — is not just intact but alive and kicking.

And for now, the floor seems to lie at $4,400 – with the world watching and waiting for 5k to fall.