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 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 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 rose 5.9% to $84.09 an ounce. It hit a record high of $121.64 on Thursday.
* Spot platinum added 3% to $2,183.64 per ounce after hitting a record high of $2,918.80 on January 26, while palladium gained 2.7% to $1,765.75.
DATA/EVENTS (GMT)
0745 France CPI (EU Norm) Prelim YY, MM Jan
0745 France CPI Prelim YY, MM NSA Jan
