AGE Daily Gold Update

AGE Daily Gold Update presents a recap on today's action in the precious metals markets. View archives.

2/2/2026: Metals fall further on profit-taking

Source: Bill Musgrave, American Gold Exchange

Austin — New York spot gold extended its selloff, falling another 5.4% to close under $4,623, as rising risk appetite spurred investors to continue taking profits from bullion's record-setting rally. Silver shed another 8.3% to finish at $76.78 an ounce.

The selloff in precious metals, which began on Friday with the announcement of Kevin Warsh as new Fed Chair, continued today with substantial rebounds in the dollar and Treasury yields following better-than-expected manufacturing data.

The ISM manufacturing survey rose to a 30-month high in January, fueling hopes of a powerful rebound in beleaguered US factories. The index jumped to 52.6% from 47.9% in December, where any reading above 50% indicated expansion.

The upbeat data helped fuel a rally in equities, with the Dow surging 1% while the S&P 500 rose near its all-time high and Nasdaq picked up 0.5%. Earnings optimism also fueled the risk-on sentiment, with at least a quarter of the S&P 500 set to report substantial growth per share this week.

The dollar rose 0.6% against major rivals as the ISM data reinforced the view that the Fed will pause rate cuts for a while. The nomination of Warsh, who has a history of being a monetary hawk, also darkened the view for rate cuts—and helped to drive the selloff I precious metals on Friday.

A stronger dollar weighs on gold and other commodities by making them more expensive in other currencies. Benchmark 10-year Treasury yields climbed for a second day on the shifting rate view, pressuring gold by increasing the opportunity cost for holding it instead of bonds for safety.

Despite historical profit-taking in all four precious metals, the bull market is widely considered to be intact. Prices remain substantially higher than at the start of the year—gold is still up 7%, silver 9%—while the economic and geopolitical uncertainty that propelled their rallies are unabated.

Analysts at USB said today that gold should reach a new record above $6,200 this year. JP Morgan is still projecting $6,300 and Deutsche Bank has reiterated its forecast of $6,000 by year end.

Platinum and palladium fell 1.9% and 2.3%, respectively.

At the New York spot close: gold fell $264.65 to $4,622.50; silver slid $6.97 to $76.78; platinum dropped $39.55 to $2,093.50; and palladium shed $39.75 to $1,689.90 an ounce.