Gold and Silver Prices Surge Dramatically in Global Markets Today
Precious metal markets experienced a violent rebound today, Tuesday, after a sharp sell-off, with gold and silver rising by more than 5% in a single session, driven by several intertwined factors that shook the market.
Gold in spot transactions recorded an increase of 5.01% to reach $4893.35 per ounce, after touching its lowest level during the previous month.
Prices had seen a record jump to $5594.82 per ounce last Thursday.
Meanwhile, silver surged by 11.7% to reach $85.93 per ounce, after hitting its all-time high at $121.64.
Market experts attributed this rebound to the nomination of Kevin Warsh to head the U.S. Federal Reserve, which initially boosted the dollar, and the "CME Group" raising margin requirements on futures contracts for precious metals, leading to sharp price fluctuations.
Kyle Rodda, Senior Market Analyst at "Capital.com" said:
"Current prices almost reflect their fair value after weeks of irrational volatility, bringing gold and silver back to levels seen in early the second half of January."
It is noted that gold recorded record gains of 13% last January, while silver rose by 19%, marking the largest monthly increase in years.
In contrast, the dollar maintained its gains despite the partial shutdown of the U.S. government and the postponement of the January employment report, making dollar-denominated gold more expensive for international investors.
Other metals also saw varied movements, with platinum rising by 0.6% to $2134.10 per ounce, while palladium fell by 0.5% to $1711.
These movements come at a time when investors expect the U.S. interest rate to be cut at least twice during 2026, which enhances the appeal of gold as a non-yielding safe haven, amid new trade agreements between the United States and India to reduce mutual tariffs.
Summary:
Gold is just steps away from $4900 per ounce, and silver is experiencing a strong recovery after a price collapse, placing the market at the heart of unprecedented volatility that could open up significant opportunities for investors.
