Gold Rout Shows Signs of Easing

2026-02-02 15:43 By Joana Taborda 1 min. read

Gold prices fell about 4% to below $4,700 per ounce on the first trading day of February, after plunging as much as 10% during the Asian session and following a 9% tumble on Friday.

Friday’s rout was triggered by US President Trump’s nomination of Kevin Warsh, widely viewed as a more hawkish choice, to lead the Fed, a move that boosted the dollar and weighed on the yellow metal.

Profit-taking also set in after a relentless rally that had pushed gold to record highs.

That advance was driven by strong central bank demand and the so-called “debasement trade,” as investors rotated into physical assets from currencies and bonds amid concerns over rising government debt.

Heightened geopolitical and economic uncertainty, along with worries about the Fed’s independence, further reinforced gold’s safe-haven appeal.



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