Gold falls 1.5% on firm dollar, silver recovers from over three-week low
Mon Feb 02 2026
Gold extended falls on Monday, pressured by a firm dollar, as investors gauged U.S. President Donald Trump's Fed chair pick Kevin Warsh's approach to interest rate cuts, while silver recovered from a more than three-week low hit on Friday.
FUNDAMENTALS
* Spot gold was down 1.5% at $4,793.97 per ounce, as of 0046 GMT, after touching a more than one-week low on Friday. Bullion scaled a record high of $5,594.82 on Thursday.
* U.S. gold futures for February delivery climbed 1.6% to $4,818.10 per ounce.
* Spot silver rose 1.6% to $85.98 an ounce. It hit a record high of $121.64 on Thursday.
* The dollar clung onto its gains as investors weighed what a U.S. Federal Reserve under Warsh might look like, with his preference for a smaller balance sheet.
* A stronger dollar makes greenback-priced gold less affordable for holders of other currencies.
* Warsh checks a long list of boxes for Trump as his pick to run the Fed, with longstanding political and social ties to the president, deep Wall Street connections and a well-tailored demeanour.
* But how deeply and quickly he will cut interest rates and how aggressively he will pursue his "regime change" at the Fed remain open questions.
* U.S. economic data on Friday showed that producer prices increased by the most in five months in December amid some pass-through from import tariffs, suggesting inflation could pick up in the months ahead and allow the Fed to keep rates steady for a while.
* Investors still expect at least two rate cuts in 2026. [FEDWATCH]
* Non-yielding bullion tends to perform better in low-interest-rate environments
* Spot platinum lost 2% to $2,120.05 per ounce after hitting a record $2,918.80 on January 26, while palladium shed 0.9% to $1,682.59.