Gold and Silver Prices Skyrocket as Bargain Hunters Step In

Gold and silver prices experienced a significant rebound as bargain hunters capitalized on prior declines. Spot gold rose by 6.9%, reflecting confidence in its long-term potential amid strong fundamentals. Silver soared 11.7% after previous sharp falls, while analysts remain optimistic about the continuation of the bull market.

Gold and silver prices rebounded sharply on Tuesday after facing significant declines in the previous two sessions. The upward movement was driven by bargain-hunters and solid underlying fundamentals, leading to gold's most substantial daily rise since November 2008.

Spot gold increased by 6.9% to $4,985.44 per ounce, recovering from a low of $4,403.24 but still below last week's peak of $5,594.82. The U.S. gold futures for April delivery also saw an increase, rising by 7.7% to $5,011 per ounce. Silver surged by 11.7%, regaining ground after dramatic losses.

Analysts, including Peter Grant from Zaner Metals, view the recent downturn as a corrective phase in a long-term uptrend. While recent market changes, such as Kevin Warsh's upcoming Federal Reserve leadership and higher margin requirements, have influenced prices, the long-term bull market for gold remains promising.

(With inputs from agencies.)