Gold clawed back some losses after a sudden selloff in the previous session, with dip-buyers snapping up the metal ahead of key US inflation data.<\/p>\n
Bullion rose as much as 1.4% on Friday, having lost 3.2% in the previous session \u2013 the biggest one-day fall in a week.<\/p>\n
That decline accompanied jitters on Wall Street, where prices buckled across asset classes on concern over the impact of AI on companies\u2019 earnings. The pullback in gold may have been amplified by margin calls and algorithmic trading.<\/p>\n
![\"\"](\"https:\/\/www.moneyweb.co.za\/wp-content\/uploads\/2026\/02\/449540000-555x342.jpg\")
<\/p>\n
\u00a0<\/p>\n
\u00a0<\/p>\n
\u00a0<\/p>\n
\u00a0<\/p>\n
ADVERTISEMENT<\/p>\n
CONTINUE READING BELOW<\/p>\n<\/div>\n<\/div>\n
\u00a0<\/p>\n
\u00a0<\/p>\n
\u00a0<\/p>\n
\u00a0<\/p>\n
\u00a0<\/p>\n
The selloff in US stocks spilled over into precious metals, as some investors with broad holdings were forced to sell commodities to cover margin calls, said Liu Shiyao, an analyst with Zijin Tianfeng Futures Co.<\/p>\n
\u201cIn many cases, investors hold these assets at the same time: when one side is sold off, the other faces redemption pressure,\u201d she said. \u201cHowever, the impact won\u2019t be too significant. Gold is still in a consolidation phase.\u201d<\/p>\n
The pullback was likely intensified by selling from commodity trading advisers using computer models to bet on price moves, said Michael Ball, a macro strategist at Bloomberg.<\/p>\n
Some of the recent selloff in gold and silver \u2014 which dropped almost 11% on Thursday \u2014 likely also stemmed from profit-taking. Precious metals had clawed back some losses after a historic rout at the turn of the month, and trading has been unusually volatile since. Despite choppy price movements, gold is set to end the week relatively flat.<\/p>\n
ADVERTISEMENT:<\/p>\n
CONTINUE READING BELOW<\/p>\n<\/div>\n<\/div>\n
Investors are now looking to US inflation figures due later Friday that may shape expectations for the Federal Reserve\u2019s next move. Robust January jobs data published this week reduced urgency for the Fed to cut interest rates again by midyear. Lower rates are a tailwind for precious metals, which don\u2019t pay interest.<\/p>\n
Speaking on CNBC Wednesday, hedge fund manager David Einhorn said he expected the Fed to lower interest rates \u201csubstantially more than\u201d markets are currently predicting. He said Kevin Warsh \u2013 whom Donald Trump has picked to succeed current Fed chair Jerome Powell \u2013 is likely to deliver the lower borrowing costs that the president wants.<\/p>\n
Gold hit an all-time high above $5 595 an ounce on 29 January, the peak of a multiyear rally that began to overheat when speculative buyers piled in throughout last month. Over the two sessions that followed, bullion fell about 13%.<\/p>\n
Many banks expect gold to resume its upward trend this year, arguing that the drivers behind earlier gains remain intact \u2014 including geopolitical tensions, questions over the Fed\u2019s independence, and a broader shift away from traditional assets such as currencies and sovereign bonds.<\/p>\n
BNP Paribas SA sees bullion at $6 000 by the end of the year, while Deutsche Bank AG and Goldman Sachs Group Inc. also have bullish forecasts.<\/p>\n
Spot gold climbed 1.1% to $4 977.44 an ounce as of 10:20 a.m. in Singapore. Silver rose 1.9% to $76.70. Platinum was up 1.4% and palladium gained 2.2%. The Bloomberg Dollar Spot Index, a gauge of the US currency, edged up 0.1%.<\/p>\n
\u00a9 2026 Bloomberg<\/p>\n
Follow Moneyweb\u2019s in-depth finance and business news on WhatsApp here.<\/em><\/p>\n<\/p><\/div>\n