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Gold and Silver Prices Record Strong Recovery After Recent Decline

Published On: February 3, 2026
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Gold and Silver Prices Record Strong Recovery After Recent Decline

After facing intense selling pressure in recent weeks, global gold and silver prices have recorded a strong recovery, rising by more than 2 percent in international markets. The rebound comes after precious metals had slipped to their lowest levels in nearly a month, raising concerns among investors.

According to international media reports, spot gold surged by 2.2 percent, reaching $4,767.33 per ounce, after touching a monthly low earlier this week. Just last Thursday, gold had climbed to a record high of $5,594.82 per ounce, highlighting the recent volatility in the market.

US Gold Futures and Investor Activity

Meanwhile, US gold futures for April delivery jumped by nearly 3 percent, settling at $4,791.10 per ounce. Market analysts believe that the recovery is mainly driven by renewed buying activity after heavy selling, as investors considered current prices more reasonable and balanced.

Experts noted that extreme fluctuations over the past few weeks had created uncertainty, prompting many traders to re-enter the market cautiously.

Factors Affecting Precious Metal Prices

Several global developments have influenced precious metal prices in recent days, including:

  • Strengthening of the US dollar

  • Changes in margin requirements by CME Group

  • Political and economic uncertainty in the United States

  • Delays in key employment data due to partial government shutdown

The CME Group recently tightened margin rules on metal futures, increasing market pressure and adding to investor caution.

Interest Rate Outlook Supports Gold

Investors are expecting the US Federal Reserve to cut interest rates at least twice in 2026. Historically, gold tends to perform well in low-interest environments, as it does not offer fixed returns and becomes more attractive when borrowing costs fall.

This expectation has strengthened long-term confidence in gold despite short-term volatility.

Silver, Platinum, and Palladium Performance

Along with gold, spot silver rose by 2.8 percent to $81.61 per ounce, showing strong investor demand. Platinum recorded a slight increase, while palladium experienced minor losses.

Market experts believe that precious metals will remain sensitive to global economic signals and central bank policies in the coming months.

Hamza Ali

Hamza Ali is an experienced writer contributing to the pefma.com.pk platform. With a strong background in government projects and infrastructure development, his work focuses on bringing attention to the impact of public sector initiatives.

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