Gold and Silver Rebound, Then Turn Choppy — What’s Driving the Whiplash

Gold and silver bounced sharply after a brutal two-day selloff, but trading quickly shifted back into a volatility-heavy “two steps forward, one step back” pattern.

Barron’s reports gold futures jumped about 6% to around $4,930/oz and silver surged about 12% to roughly $86.64/oz, as buyers stepped in after a steep rout. The drop leading into the rebound was dramatic: gold fell more than 13% in two sessions after hitting a record near $5,626/oz, while silver slumped about 33% over the same stretch.

One key trigger for the selloff was President Donald Trump’s nomination of Kevin Warsh as the next Federal Reserve chair, a move the article says was read as less dovish. That shift reduced some of gold’s safe-haven bid and also helped the U.S. dollar rebound, which can be a headwind for precious metals.

The Wall Street Journal adds that the rally attempt was real—but messy. Gold and silver started strong, with gold briefly pushing over $5,000/oz (and even above $5,100/oz intraday in one update) and silver breaking through $90/oz, before both pared gains as the session progressed. Analysts cited by WSJ warn that after a swing this large, markets often need time to consolidate, and volatility may remain elevated while speculative activity clears out.

What to watch next

If the rebound is going to stick, WSJ notes the pace of recovery may hinge on the U.S. dollar, interest-rate expectations, and broader risk sentiment—all factors that can shift quickly right now.

Sources:

Kozul-Wright, Alex. “Gold, Silver Prices Surge to Reignite Rally. Why They’re Rebounding After Selloff.” Barron’s, 3 Feb. 2026.

“Gold and Silver Pare Gains After Strong Start.” The Wall Street Journal, 4 Feb. 2026.