Gold Rebounds for 3 Days, Resurrects $5,000
Gold prices rose for a third consecutive day, re-surging above $5,000 per ounce, as "buy the dip" action resumed after the market's sharp fall from record highs. In morning trading in Asia, spot gold briefly strengthened by 1.2%.
This recovery follows last week's massive plunge that rocked the precious metals market. Despite rebounding in the past two sessions, gold closed Wednesday about 11% below its January 29th high, but is still up about 15% year-to-date—a sign that high volatility remains a key theme.
Silver also rallied, re-surfacing above $90 per ounce. Silver had previously recorded its biggest daily drop in history on Friday, while gold experienced its deepest decline since 2013—sending many market participants into a frenzy of repositioning and risk management.
However, many investors believe the underlying foundations driving last month's rally are not completely gone: a combination of speculative interest, geopolitical tensions, and the issue of central bank independence. Even some fund managers who had reduced their positions before the crash are now reportedly "scouting" opportunities to re-enter when prices are more stable.
Several major banks also remain optimistic about the continuation of the gold trend. Some are maintaining their $6,000/ounce projections, while others see potential upside risk to their year-end target of around $5,400—but emphasize that the path could be bumpy as the market is sensitive to the dollar and interest rates.
Market focus has now shifted to US interest rate policy, especially after Kevin Warsh was nominated as the next Fed chair. A lower interest rate environment is usually a boost for gold, as the precious metal does not yield interest. At 7:50 a.m. Singapore time, spot gold was up 1.2% at $5,022.61/ounce, while silver rose 2.3% to $90.20. (asd)
Source: Newsmaker.id
