Why did gold and silver prices surge on Tuesday?

Gold and silver prices surged on Tuesday due to technical oversold conditions, short covering, and renewed safe-haven demand following a historic sell-off the previous week.

What was the extent of last week's sell-off in gold and silver?

Last week's sell-off was severe, with gold plunging nearly 10% in one session and silver collapsing 27% in a single day, marking one of the steepest corrections in decades.

What economic data will influence future gold and silver prices?

Upcoming US non-farm payrolls and unemployment data are critical inputs that will influence the US Federal Reserve's rate outlook and potentially add to volatility in bullion prices.

Home / Business and Economy / Gold, Silver Rebound After Historic Sell-Off

Gold, Silver Rebound After Historic Sell-Off

3 Feb

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Summary

Gold and silver experienced their strongest single-day rebound recently.
The sharp sell-off last week was one of the steepest in decades for both metals.
Analysts cite technical oversold conditions and safe-haven demand for the recovery.

Gold, Silver Rebound After Historic Sell-Off

Precious metals gold and silver experienced a significant rebound on Tuesday, exhibiting their strongest single-day recovery since a historic sell-off in the preceding week. Gold prices surpassed Rs 1,51,000, while silver also saw a sharp increase.

This rebound follows one of the steepest corrections in decades for both gold and silver. Last week saw gold plunge nearly 10% in a single session and silver collapse 27%, driven by aggressive liquidation and margin calls.

Analysts attribute Tuesday's recovery to technical oversold conditions, short covering at lower price levels, and renewed safe-haven demand. While a technical bounce is evident, volatility may persist.