Gold prices were sharply higher on Wednesday, extending gains from the previous session after the steep late January sell-off.
Spot gold was up 2.2 percent at $5,055.15 an ounce while U.S. gold futures were up 2.8 percent at $5,073.89.
A weaker U.S. dollar boosted demand for bullion as a delay in releasing key labor market data due to a partial government shutdown added to uncertainty in the markets.
U.S. President Trump has signed a $1.2tn (£880bn) budget to end a partial government, which will help fund most government agencies until the end of the fiscal year in September.
However, the Department of Homeland Security (DHS) will be funded only until the end of next week.
Another tech-fueled sell-off on Wall Street amid fears around artificial intelligence-driven disruption affecting software companies and escalating U.S.-Iran tensions also boosted safe-haven demand for bullion.
U.S. President Donald Trump said Tuesday that Washington is negotiating with Iran "right now," without offering details.
His remarks came after a U.S. fighter jet shot down an Iranian drone approaching a U.S. aircraft carrier in the Arabian Sea.
A group of Iranian gunboats were also seen approaching a U.S.-flagged tanker in the Strait of Hormuz, raising tensions just ahead of scheduled talks between Washington and Tehran this week.
The day's economic calendar remains light, with reports on U.S. private sector employment and service sector activity likely to garner attention.
On Tuesday, Fed Governor Stephen Miran reiterated the case for aggressive central bank interest rate cuts this year, in an interview on Fox Business Network.
Separately, Federal Reserve Bank of Richmond President Tom Barkin said the Fed still has "some distance to travel" before both parts of its dual mandate of maximum employment and price stability are in balance.
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Market Analysis
January 30, 2026 15:51 ET The Federal Reserve policy decision was the main event in the final week of January, which saw a heavy flow of economics news. Several data reflecting the trends in the U.S. economy were also released during the week. The interest rate decision from Canada also was in focus. In Europe, economic sentiment data gained attention. The policy decision from Singapore was the highlight in Asia.