Precious Metals Market Update: 2/4/2026

The precious metals complex extended its recovery rally on Wednesday, February 4th, 2026, building on the momentum from Tuesday’s massive reversal. Buyers remained in control for a second consecutive session, driving prices higher across the board as confidence returned to the sector. Silver was once again the standout performer, surging over 4.3% to approach the $89.00 level. The white metal continues to attract aggressive speculative interest, outpacing the broader market as it attempts to repair the technical damage from late January.

Gold saw more modest but constructive gains, rising approximately 0.6% to trade firmly within striking distance of the $5,000 psychological barrier. The yellow metal appeared to be in a consolidation phase, holding its ground as traders positioned themselves ahead of major economic data later in the week. The industrial metals also participated in the advance, with Palladium rising over 2% and Platinum adding 1.4%, reflecting a continued stabilization in risk sentiment and a reprieve from the recent selling pressure.

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Key Drivers:

• Technical Follow-Through: The primary driver for Wednesday’s action was technical follow-through. After Tuesday’s strong bounce confirmed a short-term bottom, momentum traders continued to enter long positions, particularly in silver coins and bars. The ability of the complex to sustain gains for a second day without significant selling pressure signaled to the market that the "weak hands" had been washed out during the month-end correction.

• Pre-NFP Positioning: Price action in gold bars was influenced by positioning ahead of the upcoming U.S. Non-Farm Payrolls report. With major employment data due later in the week, institutional investors appeared reluctant to place large bearish bets, preferring to hold defensive long positions. This "wait-and-see" approach kept a floor under gold prices, allowing them to drift higher on light volume.

• Industrial Sector Stability: Platinum and Palladium benefited from a quiet day in the U.S. dollar and stable equity markets. As fears of an immediate liquidity crisis faded, value buyers stepped back into platinum, driving prices up 1.38%. The steady grind higher in palladium suggests that the acute liquidation phase has passed, allowing fundamentals to once again play a role in price discovery.

Looking Ahead:

Market focus is shifting squarely to the labor market data due at the end of the week, which will be the next major catalyst for price direction.

• Non-Farm Payrolls (Friday): Traders are bracing for Friday’s Non-Farm Payrolls (NFP) report. This data will be critical in confirming whether the labor market is softening enough to justify the Federal Reserve's dovish pivot. A weak print could launch gold back above $5,000, while a strong number could reignite volatility.

• Resistance Tests: Technical analysts will be watching to see if silver can break and close above the $90.00 resistance level. A successful breach of this zone would likely attract further technical buying, while a rejection could lead to a period of consolidation.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Market data and prices are subject to change.