Gold rises by more than 3% after a sharp selling wave

Gold rose by more than three percent today, recovering from its lowest level in almost a month recorded in the previous session, with market participants preparing for the absence of major economic data this week due to the partial closure of the US government.

The price of gold in spot transactions rose 3.7 percent to $4,837.16 per ounce by 01:20 GMT, after touching its lowest level in nearly a month in the previous session.

The precious metal hit a record level of $5,594.82 last Thursday.

US gold futures for April rose 4.5 percent to $4,859.30 an ounce.

The US Bureau of Labor Statistics said on Monday that the closely watched January employment report would not be released on Friday due to the partial shutdown of the federal government.

The government was partially closed on Saturday after Congress was unable to approve an agreement to keep the Department of Labor funded, among other operations. The Senate approved a spending package on Friday.

The House of Representatives was scheduled to take up the legislation yesterday, Monday, with a final vote expected to take place on Tuesday.

House Speaker Mike Johnson expressed optimism that the closure will end within days.

The dollar maintained its gains today, as positive economic data and changing expectations for Federal Reserve policy overshadowed concerns about the partial closure of the US government.

The rise in the dollar makes the gold in which it is denominated more expensive for holders of other currencies.

Investors expect the US interest rate to be cut at least twice in 2026.

The precious metal, which does not generate a return, is recovering in light of low interest rates.

Yesterday, Monday, US President Donald Trump announced a trade agreement with India that reduces US customs duties on Indian goods from 50 to 18 percent in exchange for India stopping buying Russian oil and lowering trade barriers.

As for other precious metals, the price of silver in spot transactions rose 5.9 percent to $84.09 per ounce. It hit an all-time high of $121.64 on Thursday.

The price of platinum in spot transactions rose three percent to $2,183.64 per ounce after hitting a record level of $2,918.80 on January 26, and the price of palladium increased 2.7 percent to $1,765.75.