Gold and silver rebound after sharp sell-off

Gold and silver prices recovered on Tuesday, regaining part of their losses after a sharp sell-off triggered by Kevin Warsh’s nomination for Fed chair and higher margin requirements imposed by CME Group.

Following heavy selling pressure in recent sessions, precious metals showed early signs of stabilization and rebound.

Rebound follows steepest drop in years

Spot gold rose 3.65% to $4,822 per ounce after plunging 4.8% in the previous session, marking its sharpest decline in more than a decade.

Silver, which fell 7% on Monday and recorded a record intraday drop on January 30, rebounded by 4% to trade at $83.12 per ounce.

Analysts warn of near-term volatility

Pepperstone Group strategist Ahmad Assiri said the fundamental drivers supporting gold remain largely unchanged from before last Friday’s correction.

However, he cautioned that markets are still digesting the recent turbulence, suggesting volatility could remain elevated in the short term.

Capital analyst Kyle Rodda added that after recent extreme moves, current price levels appear closer to fair value.

Consolidation expected before next move

UBS analysts expect gold to consolidate between $4,500 and $4,800, while projecting a potential move toward $6,200 later in the year.