Gold advances near $5 000

Gold  advanced, as dip-buyers returned to the market after an exceptionally volatile week for precious metals.

Bullion traded either side of $5 000 an ounce, seeking a solid floor after a historic rout at the end of last month. The metal climbed as much as 1.7% on Monday and has recovered around half of its losses since plunging from an all-time high hit on 29 January Silver also rose.

Gold’s ability to stabilize above the $5 000 threshold “will be critical in determining whether the market can transition from a reactive bounce to a more sustainable advance,” said Ahmad Assiri, an analyst from Pepperstone Group Ltd.

Precious metals crashed in late January after a record-breaking rally — driven by heightened geopolitical risks, the debasement trade and concerns about the Federal Reserve’s independence — appeared to run too far, too fast. A wave of speculative buying added fuel to the run. US Treasury Secretary Scott Bessent cited Chinese traders as a reason behind last week’s wild swings in gold.

Despite a week of choppy trading since the historic rout, banks including Deutsche Bank AG and Goldman Sachs Group Inc. have backed bullion to recover due to long-term demand drivers. Data over the weekend showed that the Chinese central bank extended gold purchases for a 15th month, underscoring resilient official demand — a major component of growth over the last couple of years.

Market moves in silver have been more violent than for gold, amplified by speculative momentum and thinner over-the-counter trading. The white metal — which has lost more than a third since hitting a record peak — rose as much as 5% on Monday to top $80 an ounce.

Looking ahead, traders will be watching upcoming US economic data for greater clarity on the Fed’s policy direction. The January jobs report due Wednesday is expected to show signs of labor market stabilising, and inflation data is scheduled for Friday.

President Donald Trump’s nominee to become the next Fed chair, Kevin Warsh, has voiced support for a new accord between the US central bank and the Treasury Department, deepening long-held concerns about the Fed’s independence.

Gold rose 0.6% to $4 995.76 an ounce as of 10:20 am. in Singapore. Silver advanced 3.8% to $80.76. Platinum declined, while palladium edged higher. The Bloomberg Dollar Spot Index, a gauge of the US currency, was little changed after ending the previous session down 0.4%.

© 2026 Bloomberg

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