Gold and silver prices surged on Tuesday as investors returned to precious metals following their steepest two-day slump in decades, putting bullion on track for its biggest daily gain since November 2008.
Spot gold jumped 5.3% to $4,913.59 an ounce by midday trading, rebounding from Monday’s low of $4,403.24. U.S. gold futures rose 6.1% to $4,936.20. Silver climbed 9% to $86.60 an ounce after suffering a record 27% one-day drop last Friday.
Analysts said the rebound followed heavy selling triggered by Donald Trump’s move to nominate Kevin Warsh as the next Federal Reserve chair.
«The market was oversold, and today’s move is a technical rebound,» said Peter Fertig of Quantitative Commodity Research.
Expectations that Warsh could favour interest-rate cuts have helped support prices, although tighter balance-sheet policy could strengthen the dollar. Additional pressure came after CME Group raised margin requirements for precious metals futures.
Despite the volatility, analysts remain bullish. Ole Hansen of Saxo Bank said gold is now eyeing a move toward $5,000, while silver could retest levels above $90.
Elsewhere, platinum rose 5.4% to $2,235 an ounce and palladium gained 4.8% to $1,801.50. Meanwhile, the U.S. Bureau of Labor Statistics said the January jobs report will be delayed due to a partial federal government shutdown.
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