Gold and Silver Prices Surge Amid Market Rebound: A Bullish Outlook

Gold and silver prices surged on Tuesday, recovering from a significant slump. Spot gold increased by 5.5% while silver rose by 9.2%, both reversing previous losses. Analysts predict continued growth, with gold possibly reaching new record highs this year. Market overselling and policy expectations influenced the rebound.

Gold and silver prices soared on Tuesday, marking a significant recovery following their steepest two-day plunge in decades. Spot gold rose 5.5% to $4,921.42 per ounce by 0944 GMT, climbing from Monday's low of $4,403.24. Last week's peak of $5,594.82 remains a historic high.

U.S. gold futures for April delivery soared 6.3% to $4,945.60 an ounce, while silver surged 9.2% to $86.7 per ounce, rebounding from a record 27% drop on Friday, followed by another 6% fall on Monday.

According to Peter Fertig of Quantitative Commodity Research, the market was oversold following U.S. President Donald Trump's nomination of Kevin Warsh for Federal Reserve chairman, leading to a rebound as investors see current prices as attractive for purchasing once again. Analysts predict the ongoing bull run for gold, targeting fresh record peaks later this year.