FX.co ★ Gold Surges Over 6%

Gold prices experienced a remarkable surge of over 6% on Tuesday, reaching approximately $4,950 per ounce. This marks the largest single-day increase since November 2008, as prices rebounded significantly following the most drastic two-day decline in decades. On Monday, gold had dropped to a low of $4,405 as investors secured profits after a substantial rally, which saw prices ascend to an all-time high above $5,600 last Thursday. The price movement was influenced by President Trump's decision to nominate Kevin Warsh, a former Federal Reserve governor, as the next Fed Chair. Warsh is perceived to be more hawkish compared to other candidates. Although investors still foresee Warsh eventually endorsing rate cuts, they expect a more stringent stance on balance-sheet policy. Furthermore, the US Bureau of Labor Statistics announced on Monday that the eagerly anticipated January nonfarm payrolls report would be postponed due to a partial federal government shutdown. Simultaneously, geopolitical issues remained prominent, with scheduled US-Iran discussions set for Friday and Ukraine gearing up for renewed peace talks following recent Russian attacks.