Gold and Silver Bounce as Markets Recover from Heavy Selling

LONDON (February 6) Gold has staged a rebound this morning alongside Bitcoin and equity futures after another day of heavy selling on Thursday.

By 10:45 GMT, spot gold was trading at $4,872, up nearly 2% on the day after falling to $4,659.

Cooling tensions between the US and Iran have weighed on safe-haven demand, alongside continued US dollar strength.

Silver jumped 4.3% to $74 after plunging nearly 16% on Thursday and dropping as low as $64 overnight. The white metal has seen extreme volatility this week, initially spurred by US President Donald Trump’s nomination of Kevin Warsh as the next Federal Reserve chair.

Warsh, seen as a less dovish pick, had bolstered the dollar, pressuring metals. The greenback is now on track for its best week since early October, with soft US labour market data doing little to slow its advance.

While most leveraged positions in metals have now been flushed from the market, volatility remains high as investors avoid large positions, leaving liquidity thin. Prices are expected to stabilise after last week’s turbulence, though metal traders should remain cautious.

It has been a punishing stretch across markets, with equities taking a hit, the tech-heavy Nasdaq down as much as 4% this week, and Bitcoin tumbling to $59,000, levels not seen since October 2024.

For now, markets are cautious and firmly in risk-off mode, with investors pulling back from Bitcoin, AI-heavy names, and metals.

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