Gold price today steadies near $4,770 after a violent two-day slide

Gold prices rebounded in late Monday trading after a sharp, fast selloff that erased a large chunk of January’s record-setting rally. The precious metal has been whipsawed by shifting expectations for U.S. interest rates and a rapid tightening of trading conditions in futures markets, leaving investors to decide whether the latest bounce is a reset—or the start of a deeper reversal.

As of 10:28 p.m. ET on Monday, February 2, 2026, spot gold was around $4,768 per troy ounce.

Where gold is trading now

Gold’s bounce came after it fell hard earlier in the session. The market’s range has been unusually wide, reflecting how quickly leveraged positions have been unwound and how sensitive prices have become to headlines and rate moves.

Why gold rebounded after the selloff

The bounce looks driven by a mix of mechanics and messaging rather than a single new catalyst.

First, oversold positioning. After consecutive steep declines, short covering and bargain hunting often show up quickly—especially around round-number zones that traders watch.

Second, rates and the dollar. Gold tends to struggle when the U.S. dollar strengthens and real yields rise, because bullion offers no yield. The recent drop has been closely tied to a “higher for longer” rate narrative returning to the center of the market’s attention.

Third, forced deleveraging. Part of the speed came from trading dynamics: higher margin requirements for metal futures pushed some traders to reduce exposure quickly. That kind of mechanical pressure can create air pockets lower—and equally sharp snapbacks once the forced selling eases.

How big the pullback is from January’s peak

Even after the rebound, the drawdown remains substantial.

• From the late-January high (~$5,595) to ~ $4,768: down about $827.

• Percentage drop: roughly 14.8%.

That scale matters because it changes behavior. In a smooth uptrend, dips are often met with patient buying. In a sharp correction, investors demand confirmation—slower declines, tighter trading ranges, and evidence that panic selling has ended—before stepping back in.

What to watch next

Gold’s next move will likely depend on whether the market can settle into a calmer range, and whether macro signals reinforce or contradict the “hawkish rates” narrative.

Key items that can shift sentiment quickly:

• U.S. economic data: strong growth or sticky inflation can lift yields and pressure gold; softer data can do the opposite.

• Central-bank expectations: any shift in the perceived path of policy rates can reprice gold fast.

• Volatility in silver and broader commodities: large moves across metals can spill over into gold positioning and liquidity.

• Technical levels: if gold holds above the mid-$4,600s after this rebound, traders may treat the selloff as a correction. If it breaks decisively below that zone, the market may look for a new “reset” level.

What this means for everyday buyers

If you’re buying physical gold (coins, bars, jewelry), the price you pay usually won’t match the spot price. Retail purchases typically include premiums for fabrication, distribution, and dealer margin, and those premiums can widen during volatile periods.

For investors, the main takeaway is that the market is still digesting an unusually fast move. A one-day bounce doesn’t automatically mean the correction is over—but it can be a sign the forced selling phase is fading, which is often the first step toward stabilization.

Sources consulted: Reuters; Trading Economics; Investing.com; CME Group