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Gold, Silver Rebound After Historic Sell-Off
3 Feb
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.
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.
Upcoming US non-farm payrolls and unemployment data are expected to influence the US Federal Reserve's rate outlook and potentially impact bullion prices further. Immediate support for gold is seen around Rs 1,45,000, with resistance near Rs 1,55,000.
