Gold rebounds more than 3% after sharp selloff

Gold rose more than 3% on Tuesday, rebounding from a near one-month low hit in the previous session, as market participants braced for an absence of key economic data this week due to a partial U.S. government shutdown.

FUNDAMENTALS

Spot gold <XAU=> climbed 3.7% to $4,837.16 per ounce by 0120 GMT, after touching a near one-month low in the previous session. Bullion scaled a record high of $5,594.82 on Thursday.

U.S. gold futures <GCcv1> for April delivery climbed 4.5% to $4,859.30 per ounce.

The U.S. Bureau of Labor Statistics said on Monday the closely watched employment report for January will not be released this Friday because of a partial shutdown of the federal government.

The government partially shut down on Saturday after Congress failed to approve a deal to keep the Labor Department, among other operations, funded. Though the U.S. Senate passed a spending package on Friday, the House of Representatives was out of town.

The House was due on Monday to take up legislation, with a final vote expected on Tuesday. House Speaker Mike Johnson has expressed optimism that the shutdown would end within days.

The dollar held onto gains on Tuesday as positive economic readings and shifting expectations for Federal Reserve policy outweighed concerns about the partial U.S. government shutdown. [USD/]

A stronger dollar makes greenback-priced gold less affordable for holders of other currencies.

Investors expect at least two Fed interest rate cuts in 2026. Non-yielding bullion tends to perform better in low-interest-rate environments.

U.S. President Donald Trump on Monday announced a trade deal with India that slashes U.S. tariffs on Indian goods to 18% from 50% in exchange for India halting Russian oil purchases and lowering trade barriers.

Spot silver <XAG=> rose 5.9% to $84.09 an ounce. It hit a record high of $121.64 on Thursday.

Spot platinum <XPT=> added 3% to $2,183.64 per ounce after hitting a record high of $2,918.80 on January 26, while palladium <XPD=> gained 2.7% to $1,765.75.

-Ishaan Arora/Reuters