Precious metals rebounded sharply on Tuesday after suffering heavy losses over the previous two sessions, with gold climbing nearly 6% and silver posting double-digit gains.
By 10:46 ET (15:46 GMT), spot gold had jumped 5.6% to $4,923.34 per ounce, while April gold futures advanced 6.3% to $4,945.45 an ounce.
Spot silver surged 11.1% to $87.9925 per ounce, while platinum prices also moved higher, rising 7.3% to $2,255.20 per ounce.
Gold rebounds after steep pullback from record highs
Gold prices had fallen as low as $4,400 per ounce on Monday, marking a decline of nearly $1,200 from the record high reached last week.
The sharp sell-off was largely driven by aggressive profit-taking after U.S. President Donald Trump nominated former Federal Reserve governor Kevin Warsh as the next chair of the central bank.
While the nomination removed a key source of uncertainty for markets and reduced some safe-haven demand, Warsh is widely viewed as less dovish than investors had anticipated.
Despite the steep losses, signs of stabilization emerged late Monday, with gold prices closing well above their intraday lows.
ANZ analysts noted that further price stability may depend on retail market behavior. They highlighted strong physical demand in recent months, which could help offset selling pressure from leveraged institutional positions, adding that gold’s underlying fundamentals remain intact.
Speculative excess concerns emerge
Still, some analysts warned that the rally across precious and industrial metals may be showing signs of overheating.
Peter Berezin, chief global strategist at BCA Research, cautioned that gold prices may have moved “too far, too fast,” pointing to growing evidence of speculative excess.
In a note to investors, Berezin outlined a long-term scenario in which gold could theoretically lose most of its value. He argued that the current rally is partly fueled by concerns over currency debasement, citing expanding U.S. budget deficits, rising debt levels, and significant foreign ownership of U.S. assets, which has increased vulnerability in the dollar.
He also noted that foreign central banks have continued to accumulate gold. While the physical volume of purchases has eased, the total dollar value of those holdings has continued to rise.
However, Berezin emphasized that key inflation indicators have yet to confirm a full debasement narrative. Long-term inflation expectations remain stable, and Bitcoin—often described as a digital alternative to gold—has not participated in the rally.
Copper steadies as prices recover
Base metals also showed signs of recovery, with copper prices rebounding after recent declines.
Benchmark copper futures on the London Metal Exchange rose 3.8% to $13,425 per ton, while COMEX copper futures climbed 4.1% to $6.0633 per pound.
According to Neil Welsh, head of metals at Britannia Global Markets, the rebound was driven by renewed optimism following reports that China plans to expand its strategic copper reserves.
The announcement, made by the China Nonferrous Metals Industry Association, reinforced confidence that Beijing aims to secure long-term supply through cooperation with major smelters and potential additions to commercial and concentrate inventories. The news helped reverse earlier caution in Asian markets and triggered fresh buying interest.
China remains the world’s largest importer of copper.
Recent losses in copper were notably smaller than those seen in precious metals, supported by a positive demand outlook linked to expanding energy infrastructure and increased data center construction.
