Gold and Silver Surge Amid Market Bounce-back Post Fed Nomination

Gold and silver prices rebounded after a significant drop, following Kevin Warsh's nomination as U.S. Federal Reserve chair. Spot gold rose by 4.1%, and silver by 6.2%. The market's previous irrational behavior and changes in CME margin requirements influenced the surge. Analysts predict continued bullish trends for precious metals.

Gold and silver experienced a significant rebound on Tuesday after enduring their steepest two-day decline in decades. This market swing followed the nomination of Kevin Warsh as the new U.S. Federal Reserve chair and an increase in CME margin requirements that halted the metals' record ascent.

Spot gold saw a 4.1% increase to $4,854.56 per ounce by 0623 GMT, recovering from Monday's low of $4,403.24, just shy of its previous peak at $5,594.82. Similarly, U.S. gold futures for April delivery edged up by 4.8% to $4,838.10 per ounce.

Analyst Kyle Rodda from Capital.com remarked that the current pricing stabilizes gold and silver to earlier values seen in January. Silver also rebounded, gaining 6.2% to $84.34 per ounce after its record one-day drop on Friday. Despite the setbacks, analysts remain optimistic about a continued bull run, with prospects of fresh highs later this year.

(With inputs from agencies.)