Published: February 9, 2026 | Updated: February 9, 2026
By Swikriti
Gold climbed back above the $5,000-an-ounce mark on Monday as investors returned to the market following an exceptionally volatile week for precious metals.
Bullion rose as much as 1.8%, recovering some ground after a historic rout at the end of last month. The metal has now recovered around half of the losses sustained since it plunged from an all-time high hit on Jan. 29. A gauge of the US dollar weakened.
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 at Pepperstone Group Ltd.
Even after the violent reversal, bullion is still up more than 16% this year, underscoring how powerful the earlier run had been before the late-January drawdown.
Data released over the weekend showed that the Chinese central bank extended its gold purchases for a 15th month, highlighting resilient official demand — a major component of the extended bull run that preceded the recent rout. Such purchases will continue, the official Securities Times reported, with relatively small-scale buying helping the People’s Bank of China diversify its assets without causing price volatility.
Precious metals had been on a record-breaking ascent, driven by heightened geopolitical risks, the debasement trade and concerns about the Federal Reserve’s independence. A wave of speculative buying added fuel to the rally before gold and silver crashed at the end of last month. US Treasury Secretary Scott Bessent cited “unruly” trading in China as a reason behind last week’s wild price swings.
Despite a week of choppy trading since the historic reversal, banks and asset managers including Deutsche Bank AG, Goldman Sachs Group Inc. and Pictet Asset Management have backed bullion to recover due to long-term demand drivers, such as the wider diversification away from US assets, policy uncertainties and elevated central-bank buying.
In another sign of shifting risk management, Chinese regulators have advised financial institutions to rein in their holdings of US Treasuries, citing concerns over concentration risks and market volatility, according to people familiar with the matter. Officials urged banks to limit purchases of US government bonds and instructed those with high exposure to pare down their positions, the people said.
For silver, market moves have been more violent than for gold, amplified by speculative momentum. The white metal — which has lost more than a third since hitting a record peak — rose as much as 6% on Monday to top $82 an ounce.
“Silver has entered a markedly higher-volatility regime,” Marc Loeffert, a trader at Hereaus Precious Metals, wrote in a note on Monday. Retail dip buying has driven large ETF inflows into silver, he said, helping the white metal to reverse some of its rapid losses.
The largest silver ETF saw a surge in inflows last week, with 32 million ounces flowing into SLV last Monday — the most in five years.
Looking ahead, upcoming US economic data should offer traders clues on the Fed’s policy direction. The January jobs report due Wednesday is expected to show signs of the labor market stabilizing, and inflation data is scheduled for Friday.
Adding to concerns about the Fed’s independence, President Donald Trump’s nominee to become the next Fed chair, Kevin Warsh, voiced support for a new accord between the US central bank and the Treasury Department.
Gold climbed 1.8% to $5,054.68 an ounce as of 10:47 a.m. in New York. Silver advanced 5.6% to $82.21. Platinum and palladium both rose. The Bloomberg Dollar Spot Index, a gauge of the US currency, was down 0.6%.
For more context on the moves and the broader market backdrop, you can read the original report via Bloomberg’s coverage here .
