Gold and Silver prices surged more than 2% after a recent historic fall triggered by Fed leadership changes and tighter margin rules.
After a historic fall, gold and silver prices recorded a strong rise on Tuesday, increasing by more than 2 percent. This increase came after heavy selling pressure pushed prices to their lowest level in about one month. The fall earlier happened due to the nomination of Kevin Warsh as the US Federal Reserve chairman and after CME Group tightened margin rules, which increased pressure on precious metals.
According to Reuters, spot gold rose by 2.2 percent to reach $4,767.33 per ounce. Just a day earlier, gold and silver prices had touched its lowest level in nearly a month. It is important to note that only last Thursday, gold had reached a record high of $5,594.82 per ounce. Meanwhile, US gold futures for April delivery increased by 3 percent to $4,791.10 per ounce.
Market experts said current prices look more reasonable because the market has seen unusual ups and downs in recent weeks. They added that this recovery has brought prices close to the levels seen in the second half of January. During January, gold prices rose by nearly 13 percent, which was the biggest monthly increase since November 2009. At the same time, silver prices went up by 19 percent.
However, after Kevin Warsh’s nomination, the US dollar became stronger, and higher margin requirements increased pressure on gold and silver prices. CME Group raised margin requirements for precious metal futures after markets closed on Monday, which added to market tension.
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On the economic side, the US Labor Bureau said that due to a partial government shutdown, the January jobs report will not be released on Friday. Investors believe that in 2026, the US Federal Reserve may cut interest rates at least twice. In a low interest rate environment, gold which does not earn profit or interest, usually performs better.
Spot silver rose by 2.8 percent to $81.61 per ounce, while platinum saw a slight increase and palladium recorded a small decline.
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