Gold and silver prices rebounded sharply on Tuesday after plummeting in the last couple of trading sessions.
Gold prices on COMEX rose more than 6%, while the silver contract experienced a whopping 14% rise on Tuesday.
Meanwhile, oil prices also rose nearly 1% after spending most of the day mostly flat as traders resorted to lower-level purchases.
On the other hand, copper prices on the London Metal Exchange rebounded more than 4% on renewed optimism following news that China plans to expand its strategic copper reserves.
Gold and silver rebound
Gold is anticipated to reach new record highs, driven by investment demand and central-bank purchases. The metal’s recent two-session dip has already prompted bargain-hunting activity.
Silver, however, is expected to maintain its volatility.
At the time of writing, the price of the gold contract on COMEX was at $4,927 per ounce, up 5.9%, while silver prices were 12.4% higher at $86.705 per ounce.
On Tuesday, gold was poised for its most significant daily increase since 2008.
This rebound followed a substantial two-day sell-off that had been provoked by several factors: President Donald Trump naming Kevin Warsh as the new Federal Reserve Chair, a strengthening dollar, and widespread profit-taking.
Investment banks have issued various gold price forecasts for the year. UBS and JP Morgan are the most bullish, anticipating gold to reach between $6,200 and $6,300 by year-end.
Deutsche Bank also has a high expectation, projecting bullion to hit $6,000 this year. Looking further out, Citi kept its base-case forecast for 2026, expecting an average price of $5,000 in the first quarter.
Gold recently experienced a significant drop, plummeting to nearly a one-month low of around $4,400.
This represented a sharp 21% decrease from Thursday’s peak. However, the metal has since recovered dramatically, pushing back above $4,900 in early trading this morning.
“Could that mean the downside correction is over? Who knows. But traders should not assume that it won’t continue to be volatile,” said David Morrison, senior market analyst at Trade Nation.
Silver experienced a significant decline, slumping 41% from Thursday’s peak to yesterday’s low as prices fell toward $70 per ounce.
However, the metal has since achieved an impressive recovery, climbing back to within just two cents of the $88 mark.
“Trade continues to be volatile and extremely choppy, and, like gold, it’s far too early to sound the ‘all clear’ to signal that it’s safe to go back in the water,” Morrison said.
There may certainly be opportunities for traders who are quick on their feet. But these are markets that are subject to whipsaw.
Oil climbs
Oil prices found stability on Tuesday, following a drop of more than 4% in the prior session.
This steadying came as market participants assessed both the global supply outlook and the potential for reduced tensions between the US and Iran.
The global oil market is currently balanced, according to Russia’s Deputy Prime Minister Alexander Novak, who also anticipates a gradual rise in demand during March and April.
This statement followed the OPEC+ group’s decision on Sunday to maintain its current oil production levels for March. Novak further noted that Russia has ample fuel reserves, with a current surplus.
Meanwhile, oil prices dropped over 4% on Monday. The slump occurred after US President Donald Trump indicated a potential de-escalation of tensions with Iran, an OPEC member, by stating that Iran was “seriously talking” with Washington.
Nuclear talks between Iran and the US are set to restart on Friday in Turkey, according to officials from both nations who spoke to Reuters on Monday.
The announcement comes as President Trump issued a warning, stating that “bad things could happen if a deal was not reached,” given the large US warships currently en route to Iran.
Despite willingness to talk, the situation is difficult: Trump demands Iran halt its nuclear and missile programs and end support for regional terrorist groups. Iran appears unwilling to comply.
“In the event of an escalation, it is not only Iran’s potential export losses that are causing concern, but above all the threat of Iran blocking the Strait of Hormuz, through which around a quarter of seaborne oil supplies are transported,” Barbara Lambrecht, commodity analyst at Commerzbank AG, said.
At the time of writing, the price of West Texas Intermediate crude oil was at $62.84 per barrel, up 1.1%, while Brent was 0.8% higher at $66.82 per barrel.
Copper rebounds more than 4%
Renewed optimism drove copper prices to a session high of $13,531 per ton on Tuesday, marking a $600 increase.
This jump followed news that China, through the China Nonferrous Metals Industry Association, intends to expand its strategic copper reserves.
The announcement solidified confidence in Beijing’s strategy to ensure long-term supply security.
This goal is expected to be achieved by collaborating with major smelters and potentially increasing commercial and concentrate inventories.
“The headline quickly reversed early caution in Asia, sparking fresh buying as traders interpreted the announcement as a sign of policy support for industrial demand,” Neil Welsh, head of metals at Britannia Global Markets, said in an emailed commentary.
According to Mysteel, the daily physical trade in China has recently doubled to over 38,000 tons. This strength mirrors a similar increase in turnover on the LME.
Welsh added:
That renewed buying interest, alongside Beijing’s signal that it plans to expand strategic and potentially commercial copper stockpiles, could offer important psychological support for prices near present levels.
Despite the persistent volatility, the long-term outlook for copper remains strong.
While the strengthening dollar and the uncertainty regarding the future direction of US monetary policy—particularly with the likely appointment of Kevin Warsh as Fed Chair—are dampening near-term sentiment, the metal’s structural fundamentals are robust.
These include vigorous demand from the energy transition, constrained mine supply, and China’s supportive role in stabilising the market, according to Welsh.
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