Gold and silver prices moved higher today, recovering some ground after suffering their steepest two-day decline in decades. The recent volatility followed the nomination of Kevin Warsh as the next chair of the US Federal Reserve and an increase in margin requirements by the CME Group, both of which cooled a rally that had pushed precious metals to record levels.
Spot gold rose by over 4% to trade around $4,854 per ounce this morning. This marked a notable bounce from yesterday’s low of roughly $4,403, reached shortly after prices peaked above $5,590 earlier in the week. US gold futures for April delivery also strengthened, climbing close to 5%.
Market analysts suggest the rebound reflects a return to more sustainable pricing. Kyle Rodda, senior market analyst at Capital.com, noted that recent price action had become disconnected from fundamentals and that current levels resemble those seen earlier in the second half of January.
Gold’s rapid ascent earlier this year saw it record a monthly gain of almost 13% in January, its strongest performance since late 2009. Silver followed a similar trajectory, reaching an all-time high above $121 per ounce last week before reversing sharply.
Silver prices rose more than 6% today to around $84 per ounce. This followed a dramatic 27% single-day drop on Friday, the largest on record, with further losses pushing prices briefly down to the low $70s.
The nomination of Kevin Warsh by US President Donald Trump was viewed by markets as credible and stabilising, supporting the US dollar and prompting a reassessment of precious metal valuations. At the same time, higher margin requirements introduced by CME Group reduced speculative positioning, accelerating last week’s sell-off.
Despite the scale of the pullback, many analysts continue to expect the broader bull trend in gold and silver to persist, with forecasts pointing towards new highs later in the year as investors remain sensitive to inflation risks, monetary policy shifts and geopolitical uncertainty.
Elsewhere, the US Bureau of Labor Statistics confirmed that the January employment report will not be published this Friday due to a partial shutdown of the federal government, removing a key data point that often influences market sentiment.
In other precious metals, platinum rose nearly 3% to about $2,183 per ounce, having touched a record high in late January. Palladium also edged higher, gaining close to 3% to trade near $1,766 per ounce.
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