PRECIOUS-Gold extends gains as uncertainty keeps investors engaged

By Anmol Choubey

Feb 4 (Reuters) - Gold prices climbed on Wednesday, extending gains from the previous session after one of its steepest sell‑offs in decades, as broader geopolitical uncertainty drove investors back to the safe-haven metal.

Spot gold XAU= was up 2% at $5,038.99 per ounce, as of 09:08 a.m. ET (1408 GMT), building on a 5.9% rise on Tuesday.

U.S. gold futures GCcv1 for April delivery climbed 2.6% to $5,061.90 per ounce.

Bullion slid more than 13% on Friday and Monday, its steepest two‑day sell‑off in decades, after hitting a record high of $5,594.28 on Thursday. The metal remains up over 17% so far this year.

"Whenever you have a big move like that, there is usually a bit of a bounce," said Marex analyst Edward Meir, adding that gold could be at the start of a consolidation range, trading sideways rather than seeing sharp swings in coming weeks.

On the geopolitical front, Iran and the United States are set to hold talks in Oman on Friday, even as tensions remain elevated after the U.S. military said it shot down an Iranian drone approaching a U.S. aircraft carrier in the Arabian Sea on Tuesday.

U.S. private job growth undershot expectations, with ADP data showing just 22,000 jobs added in January versus forecasts of 48,000.

Non-yielding bullion tends to perform better in low-interest-rate environments.

Goldman Sachs continues to see upside risk to its $5,400/oz gold forecast for December 2026, citing strong central bank buying and expected ETF inflows as the Fed cuts rates, with further private‑sector demand a potential upside surprise.

Meanwhile, spot silver XAG= rose 7.6% to $91.55 an ounce on Wednesday. The white metal hit a month-low of $71.33 on Monday following a record high of $121.64 on Thursday last week, and up 28.6% so far this year.

Spot platinum XPT= added 3.9% to $2,288.20 per ounce, while palladium XPD= gained 5.7% to $1,831.18.