Gold and Silver Prices Surge in Global Markets Amid Economic Uncertainty
Precious metal markets experienced a sharp rebound on Tuesday following a wave of heavy selling, with gold and silver prices rising over 5% in a single session due to several interrelated factors impacting the market.
The spot gold price increased by 5.01%, reaching $4,893.35 per ounce, after hitting its lowest level in the previous month.
Prices had previously surged to a record high of $5,594.82 per ounce last Thursday.
Meanwhile, silver jumped 11.7% to $85.93 per ounce, following a historic peak of $121.64.
Market experts attributed this rebound to the nomination of Kevin Warsh for the presidency of the U.S. Federal Reserve, which initially boosted the dollar, and the CME Group's increase in margin requirements for precious metal futures contracts, leading to significant price fluctuations.
Kyle Rodda, chief market analyst at Capital.com:
"Current prices reflect nearly their fair value after weeks of irrational fluctuations, bringing gold and silver back to levels seen in early January."
It is noteworthy that gold recorded a record gain of 13% in January, while silver rose by 19%, marking the largest monthly increase in years.
Additionally, the dollar maintained its gains despite the partial U.S. government shutdown and delays in the January employment report, making gold, priced in dollars, more expensive for international investors.
Other metals showed mixed movements, with platinum rising 0.6% to $2,134.10 per ounce, while palladium fell 0.5% to $1,711.
These developments occur as investors anticipate at least two interest rate cuts by the U.S. in 2026, enhancing gold's appeal as a non-yielding safe haven amid new trade agreements between the U.S. and India aimed at reducing mutual tariffs.
Summary:
Gold is nearing $4,900 per ounce, and silver is experiencing a significant rebound after a price collapse, placing the market at the center of unprecedented fluctuations that could present substantial opportunities for investors.
