Gold extends rally, jumps over 2% after best day since 2008

Gold prices climbed more than 2% on Wednesday, building on their best day since 2008 in the previous session, as bargain-hunting and a softer dollar supported bullion.

FUNDAMENTALS

* Spot gold was up 2.2% at USD 5,044.74 per ounce, as of 0112 GMT, after gaining 5.9% on Tuesday, its biggest daily gain since November 2008. Bullion scaled a record high of USD 5,594.82 last Thursday.

* US gold futures for April delivery climbed 2.7% to USD 5,067.0 per ounce.

* The dollar fell against most major currencies except the yen on Tuesday, as traders consolidated recent gains fuelled by upbeat US data and expectations of a less-dovish Federal Reserve.

* A weaker dollar makes greenback-priced bullion more affordable for holders of other currencies.

* US President Donald Trump on Tuesday signed a spending deal into law that ends a partial US government shutdown.

* The closely watched employment report for January will not be released this Friday because of the partial shutdown.

* Investors are ramping up bets on higher long‑dated Treasury yields and a steeper yield curve as incoming Federal Reserve Chair Kevin Warsh is expected to press for interest rate cuts while shrinking the US central bank's balance sheet.

* Investors expect at least two Fed interest rate cuts in 2026 and await ADP private payroll data later in the day for more cues into the Fed's policy path. Non-yielding bullion tends to perform better in low-interest-rate environments.

* The current wave is expected to be sharp, probably to surge into the USD 4,950 to USD 5,198 range, Reuters technical analyst Wang Tao said.

* Spot silver rose 2.1% to USD 86.92 an ounce. It touched a record high of USD 121.64 on Thursday.

* Spot platinum added 2.3% to USD 2,260.50 per ounce after hitting an all-time high of USD 2,918.80 on January 26, while palladium gained nearly 3% at USD 1,782.85.

(Reporting by Ishaan Arora in Bengaluru; Editing by Sherry Jacob-Phillips)