Gold & Silver Rebound After Sharp Fall; Markets Remain Volatile
After a continuous decline, gold and silver prices witnessed a sharp rebound from the “dead cat bounce” levels recorded yesterday, offering temporary relief to investors.
In Tuesday’s spot market trading, gold, which had slipped to around $4,650 per troy ounce, climbed to above $4,855, marking a 4.2% rise after a 4.8% fall in the previous session. Gold had dropped nearly 13% over the past two days, making this rebound a modest recovery.
Silver prices also surged, rising 8.1% to above $85 per ounce, following a 7% decline on Monday.
Reasons Behind the Rise:
- Temporary pause in the strengthening of the US dollar
- Easing of US-Iran tensions
- Signs of de-escalation in the US-India trade dispute and progress towards a trade agreement
- Mixed US economic data weakening the dollar
Additionally, the partial shutdown of the US government, now in its fourth day, has kept gold in focus as a safe-haven asset, with funding negotiations still unresolved amid political disagreements.
Outlook:
While the rebound has provided some comfort to investors, analysts caution that it is unclear whether the upward trend will sustain. Upcoming US economic data, political developments, and movements in the dollar will play a key role in determining future price direction. Experts advise investors to consider buying on dips, while remaining cautious due to ongoing market volatility.
