Gold rebounds more than 3% after sharp selloff

Fundamentals - Spot gold increased by 3.7% to $4,837.16 per ounce after reaching a near one-month low in the previous session, with a record high of $5,594.82 noted on Thursday [1][6] - U.S. gold futures for April delivery rose by 4.5% to $4,859.30 per ounce [1][6] - Spot silver surged by 5.9% to $84.09 per ounce, also hitting a record high of $121.64 on Thursday [5][6] - Spot platinum gained 3% to $2,183.64 per ounce after reaching a record high of $2,918.80 on January 26, while palladium increased by 2.7% to $1,765.75 [6] Economic Context - The U.S. Bureau of Labor Statistics announced that the employment report for January will not be released due to a partial government shutdown [1][6] - The partial government shutdown occurred after Congress failed to approve funding for the Labor Department, despite the Senate passing a spending package [3][6] - House Speaker Mike Johnson expressed optimism that the shutdown would conclude within days, with a final vote on legislation expected [4][6] - The dollar maintained its gains as positive economic indicators and changing expectations for Federal Reserve policy outweighed concerns about the shutdown [4][6] Market Expectations - Investors anticipate at least two interest rate cuts by the Federal Reserve in 2026, which typically benefits non-yielding bullion in low-interest-rate environments [5][6] - A stronger dollar makes gold less affordable for holders of other currencies, impacting demand [4][6] Trade Developments - U.S. President Donald Trump announced a trade deal with India, reducing U.S. tariffs on Indian goods from 50% to 18% in exchange for India ceasing Russian oil purchases and lowering trade barriers [5][6]