Gold and silver prices continued to rebound.
2026-02-04 23:29:45
Gold and silver prices surged at the opening of the US market on Wednesday (February 4). Bullish sentiment returned, pushing prices to continue their rebound this week. Certain geopolitical factors continue to support demand for gold and silver as safe-haven assets. April gold futures (generally a dozen dollars higher than spot gold) rose $63.10 to $4,998.10 during the session; March silver futures rose $5.859 to $89.16.
Outflows from Chinese gold ETFs serve as a warning to bullish investors. Tuesday saw the largest single-day outflow in history for major Chinese gold ETFs—totaling nearly $1 billion. Investor confidence has been severely damaged as gold prices have plummeted from record highs. According to Bloomberg data, the four major Chinese gold ETFs saw a combined net outflow of approximately 6.8 billion yuan ($980 million) on Tuesday. This marks the second consecutive day of outflows for the Huaan Yifu, Bosera, E Fund, and Guotai ETFs, which had just recorded record inflows a few days prior.
The partial shutdown of the U.S. government has finally ended. The shutdown, which lasted for several days, ended Tuesday after President Trump and Senate Democrats signed an appropriations agreement. The funding package only finances deportation operations and provides funding only to the Department of Homeland Security until February 13; other government departments will continue to receive funding until the end of the fiscal year on September 30. Initially, some conservative members of the House of Representatives opposed the agreement, but changed their minds after Trump asked them to vote on it. However, some Democratic members still voted against it, arguing that the agreement did not impose any new constraints on immigration enforcement personnel.
As tensions escalate, Iran wants the US-Iran talks to be moved from Turkey to Oman. According to sources familiar with the matter, Iran is demanding that the US move the planned diplomatic negotiations from Turkey to Oman and limit the discussion to Iran's nuclear program. "Tehran rejects the US demand to include Iran's ballistic missile program and its support for Middle Eastern allies' militia groups in the negotiations," these unnamed sources said. They also indicated that Iran opposes the participation of regional countries other than Turkey in the negotiations. The differences between the two sides on the scope of the negotiations could further escalate tensions with Washington. President Trump has threatened to take action against Iran if it does not agree to an agreement. The US government has demanded that Iran cease supporting its Middle Eastern proxy groups, limit its weapons development, and establish a framework for its nuclear activities. On Tuesday, the US military said a US warplane shot down an Iranian drone that "maliciously approached" the USS Abraham Lincoln aircraft carrier in the Arabian Sea. Trump reiterated on Tuesday that the US and Iran maintain diplomatic relations.
The United States is set to unveil detailed plans to rebuild its rare earth supply chain. The Trump administration is reportedly expected to launch its "most ambitious plan to date" to rebuild the supply chain for critical minerals needed for products ranging from jet engines to smartphones. The plan may include procurement agreements with relevant partners; simultaneously, the U.S. will establish a $12 billion strategic reserve to weaken China's dominance. Vice President Judd Vance will deliver a keynote address today at a meeting hosted by Secretary of State Marco Rubio, with officials from dozens of countries in Europe, Asia, and Africa in attendance. The U.S. is expected to sign agreements on supply chain logistics, but specific details have not yet been released. According to the Associated Press, Rubio met with the foreign ministers of South Korea and India on Tuesday to discuss the mining and processing of critical minerals. This meeting and the related agreements come just two days after President Trump announced the "Vault Plan," which aims to establish a critical mineral reserve through a $10 billion loan from the Export-Import Bank of the United States and nearly $1.67 billion in private capital.
A senior Chinese official has pledged to significantly boost domestic consumption. According to reports, a senior Chinese economic official stated that as Asian countries face a “critical juncture” in the global economic transformation, China will continue to promote the construction of a unified market to unleash domestic consumption potential.
(COMEX Gold Daily Chart Source: FX678)
Technically, gold futures formed a clear bearish "key reversal" pattern on the daily chart last week. This chart pattern suggests the market has topped out. The bulls' next upside target is a close above the key resistance level of $5,250.00. The bears' near-term downside target is to push futures prices below the key support level of $4,423.20. The first resistance level is at $5,113.90, followed by $5,200.00; the first support level is at $5,000.00, followed by $4,630.40.
The daily chart for March silver futures may show a bearish pattern. The next upside target is a closing price above the key technical resistance level of $100.00; while the next downside target for the bears is a break below the support level of $70.00. The first resistance level is $91.00, followed by $92.50; the next support levels are $85.00 and the overnight low of $83.00.
Note: The gold market is primarily traded through two pricing mechanisms. The first is the spot market, where prices apply to immediate purchase and delivery; the second is the futures market, where prices are determined for delivery on a future date. Due to decreased market liquidity at the end of the year, the December gold futures contract is currently the most actively traded contract on the CME market.
Outflows from Chinese gold ETFs serve as a warning to bullish investors. Tuesday saw the largest single-day outflow in history for major Chinese gold ETFs—totaling nearly $1 billion. Investor confidence has been severely damaged as gold prices have plummeted from record highs. According to Bloomberg data, the four major Chinese gold ETFs saw a combined net outflow of approximately 6.8 billion yuan ($980 million) on Tuesday. This marks the second consecutive day of outflows for the Huaan Yifu, Bosera, E Fund, and Guotai ETFs, which had just recorded record inflows a few days prior.
The partial shutdown of the U.S. government has finally ended. The shutdown, which lasted for several days, ended Tuesday after President Trump and Senate Democrats signed an appropriations agreement. The funding package only finances deportation operations and provides funding only to the Department of Homeland Security until February 13; other government departments will continue to receive funding until the end of the fiscal year on September 30. Initially, some conservative members of the House of Representatives opposed the agreement, but changed their minds after Trump asked them to vote on it. However, some Democratic members still voted against it, arguing that the agreement did not impose any new constraints on immigration enforcement personnel.
As tensions escalate, Iran wants the US-Iran talks to be moved from Turkey to Oman. According to sources familiar with the matter, Iran is demanding that the US move the planned diplomatic negotiations from Turkey to Oman and limit the discussion to Iran's nuclear program. "Tehran rejects the US demand to include Iran's ballistic missile program and its support for Middle Eastern allies' militia groups in the negotiations," these unnamed sources said. They also indicated that Iran opposes the participation of regional countries other than Turkey in the negotiations. The differences between the two sides on the scope of the negotiations could further escalate tensions with Washington. President Trump has threatened to take action against Iran if it does not agree to an agreement. The US government has demanded that Iran cease supporting its Middle Eastern proxy groups, limit its weapons development, and establish a framework for its nuclear activities. On Tuesday, the US military said a US warplane shot down an Iranian drone that "maliciously approached" the USS Abraham Lincoln aircraft carrier in the Arabian Sea. Trump reiterated on Tuesday that the US and Iran maintain diplomatic relations.
The United States is set to unveil detailed plans to rebuild its rare earth supply chain. The Trump administration is reportedly expected to launch its "most ambitious plan to date" to rebuild the supply chain for critical minerals needed for products ranging from jet engines to smartphones. The plan may include procurement agreements with relevant partners; simultaneously, the U.S. will establish a $12 billion strategic reserve to weaken China's dominance. Vice President Judd Vance will deliver a keynote address today at a meeting hosted by Secretary of State Marco Rubio, with officials from dozens of countries in Europe, Asia, and Africa in attendance. The U.S. is expected to sign agreements on supply chain logistics, but specific details have not yet been released. According to the Associated Press, Rubio met with the foreign ministers of South Korea and India on Tuesday to discuss the mining and processing of critical minerals. This meeting and the related agreements come just two days after President Trump announced the "Vault Plan," which aims to establish a critical mineral reserve through a $10 billion loan from the Export-Import Bank of the United States and nearly $1.67 billion in private capital.
A senior Chinese official has pledged to significantly boost domestic consumption. According to reports, a senior Chinese economic official stated that as Asian countries face a “critical juncture” in the global economic transformation, China will continue to promote the construction of a unified market to unleash domestic consumption potential.
(COMEX Gold Daily Chart Source: FX678)
Technically, gold futures formed a clear bearish "key reversal" pattern on the daily chart last week. This chart pattern suggests the market has topped out. The bulls' next upside target is a close above the key resistance level of $5,250.00. The bears' near-term downside target is to push futures prices below the key support level of $4,423.20. The first resistance level is at $5,113.90, followed by $5,200.00; the first support level is at $5,000.00, followed by $4,630.40.
The daily chart for March silver futures may show a bearish pattern. The next upside target is a closing price above the key technical resistance level of $100.00; while the next downside target for the bears is a break below the support level of $70.00. The first resistance level is $91.00, followed by $92.50; the next support levels are $85.00 and the overnight low of $83.00.
Note: The gold market is primarily traded through two pricing mechanisms. The first is the spot market, where prices apply to immediate purchase and delivery; the second is the futures market, where prices are determined for delivery on a future date. Due to decreased market liquidity at the end of the year, the December gold futures contract is currently the most actively traded contract on the CME market.
- Risk Warning and Disclaimer
- The market involves risk, and trading may not be suitable for all investors. This article is for reference only and does not constitute personal investment advice, nor does it take into account certain users’ specific investment objectives, financial situation, or other needs. Any investment decisions made based on this information are at your own risk.
