Precious metals prices surge as Kevin Warsh is named next Federal Reserve chair and margin rules change
Precious metals prices rebounded on Tuesday following a steep multi-session selloff. The market move followed the announcement of a new Federal Reserve chair.
Insights:
Spot gold rose 6.9% to $4,985.44 per ounce by 11:40 a.m. ET (1640 GMT) on Feb. 3, 2026, marking a significant rebound after a sharp two‑session selloff. Prices for the precious metal recovered from Monday's low of $4,403.24, though they remained below the record high of $5,594.82 reached last week. Meanwhile, U.S. 
USgold futures for April delivery climbed 7.7% to $5,011 per ounce on Feb. 3, 2026.
USgold futures for April delivery climbed 7.7% to $5,011 per ounce on Feb. 3, 2026.The sharp price movements occurred as market participants reacted to the announcement that Kevin Warsh kevin warshhas been named the next head of the Federal Reserve. Current chair Jerome Powell jerome powellis expected to step down from the role in May. Market expectations suggest that investors believe Kevin Warshwill support interest rate cuts while simultaneously working to tighten the central bank's balance sheet.
