Gold and Silver Surge Amid Market Turmoil

Gold and silver prices rebounded over 2% on Tuesday following a selloff due to Kevin Warsh's Fed chair nomination and CME Group's higher margin requirements. The metals rose after recording January gains of 13% for gold and 19% for silver. Investors anticipate Federal Reserve interest rate cuts in 2026.

Gold and silver prices experienced a noteworthy rebound of more than 2% on Tuesday, stemming largely from previous market fluctuations triggered by the nomination of Kevin Warsh as the next Federal Reserve chair and an increase in margin requirements by CME Group.

Spot gold saw a rise to $4,767.33 per ounce after hitting a near month-low on Monday. Meanwhile, U.S. gold futures for April delivery rose by 3%. Gold and silver have returned to their levels from early January, where gold saw a nearly 13% increase and silver rose by 19% in January.

The U.S. Bureau of Labor Statistics has delayed releasing the January employment report due to a partial government shutdown. Investors are anticipating at least two Federal Reserve interest rate cuts in 2026, which is favorable for non-yielding commodities like gold and silver.

(With inputs from agencies.)