Gold and Silver Rally After Historic Sell-off: Silver Surges 15%
Gold and Silver Rally After Historic Sell-off: Silver Surges 15%
Gold and silver rebound from last week's plunge, with silver up 15% and gold posting a major gain as markets weigh safe-haven demand and policy risks.
Gold and silver staged a dramatic rebound on Tuesday, recovering some of last week’s steep losses as investors returned to safe-haven assets. Silver jumped about 15% in early trading, while gold logged its biggest single-day gain in years, signaling renewed buying interest after a brutal sell-off.
The prior week saw metals through one of their sharpest corrections in decades: gold tumbled nearly 10% in a single session—the steepest drop since 1983—while silver slid as much as 27% in a day. Over the next 48 hours, the decline deepened, with gold off roughly 13% and silver down around 34% from their recent highs. Tuesday’s bounce suggests traders may be stepping back in at lower levels, aided by technical oversold conditions and short-covering dynamics.
In Indian markets, gold traded above Rs 1,51,000 on the MCX, with intraday gains of several thousand rupees as renewed safe-haven buying took hold. Globally, spot prices rose as investors weighed the near-term path for US monetary policy and data releases, which could set the tone for volatility in the weeks ahead. Analysts note that the rebound could be a technical bounce in a broader volatile environment, rather than a definitive trend reversal, so near-term moves may hinge on macro signals from the Fed and economic data.
The price action underscores the metals’ role as a barometer of risk appetite. While the sharp losses were alarming, the rebound offers a measure of relief for portfolio managers who had warned of margin pressures and panic selling. Investors will be watching for follow-through in the coming sessions to determine whether the rally can gain sustainable momentum or fade as risk sentiment remains sensitive to policy chatter and inflation readings.
