Precious metal prices have started to rise, partially recovering losses after a sharp two-day 13% drop that shocked global markets in late January. Spot gold prices rose 4.2%, exceeding the $4855 per ounce mark, while silver rose 8.1%, climbing back above $85. This is reported by Bloomberg, writes UNN.
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Analysts attribute the sharp drop in prices on Friday and Monday to the rebound of the US dollar and the nomination of Kevin Warsh as Fed chairman, which eased fears of political pressure on the regulator. Despite this, demand for physical gold remains high, especially in China. Ahead of the Lunar New Year, buyers are massively buying up bars and jewelry in the Shenzhen market.
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Leading Chinese state banks have already begun to tighten control over gold investments to cope with excessive market volatility.
Analysts' forecasts: heading for $6000
Most experts consider the recent collapse to be only a temporary correction of an "overheated" market. Pepperstone Group market strategist Ahmad Assiri noted that the fundamental factors supporting gold – geopolitical instability and currency depreciation – remain unchanged. In turn, Deutsche Bank confirmed its optimistic forecast, expecting the price to rise to $6000 per ounce during 2026.
The three-day decline was a necessary correction, but the drivers of multi-year growth are still in play
At the same time, the market remains hypersensitive to news from the Middle East: a possible diplomatic breakthrough in US-Iran negotiations could again increase pressure on precious metal prices.
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