Why is gold falling even as some futures bounce?

Futures can rise on short covering when leveraged traders close positions, which lifts prices briefly. Spot prices may still lag if physical demand is soft and dealers widen spreads. Until the spot-futures basis narrows and liquidity improves, bounces can fade, and the broader gold selloff can continue.

How does USD strength affect Singapore gold prices?

A stronger USD lifts USD gold but also changes SGD conversion. Local quotes reflect both bullion moves and USD/SGD. Sometimes a rising dollar cushions losses in SGD terms. When the dollar weakens, SGD returns can lag. Always check both metal direction and currency to understand your net exposure before trading.

What should I watch to judge if the rebound is durable?

Look for a tighter spot-futures basis, steadier dealer quotes, and firm ETF flows. Rising open interest with higher spot is healthier than one-off squeezes. Volatility should contract, not expand, on up days. If these signals align around key macro events, the chances improve that the futures rebound is turning into real demand.

How can Singapore investors manage risk during high volatility?

Use smaller position sizes, limit orders, and staggered entries. Set stops where your thesis fails, not at random round numbers. Consider USD/SGD hedges if your gold exposure is large. Avoid high leverage while brokers raise margins, and keep cash ready for dislocations, rather than chasing thin books during illiquid hours.

Global Market Insights

XAUUSD Today, February 3: Gold Selloff Deepens; Futures Rebound

ByHuzaifa Zahoor February 3, 2026February 3, 2026

XAUUSD today shows gold under pressure as last week’s drop extends. A strong dollar and forced deleveraging weigh on spot prices, while futures rebound on short covering. The split between spot and futures is widening, lifting intraday volatility. For Singapore investors, this affects SGD quotes at local dealers, SGX-listed gold ETFs, and miners’ sensitivity to bullion swings. We focus on risk control, USD exposure, and clear signals that can help you decide whether this bounce is durable or tactical.