Gold Records Biggest Daily Jump Since 2008 After Two-Day Slump
TOKYO — Gold prices staged a strong comeback on Tuesday, surging more than five per cent and heading for their biggest daily gain since November 2008, following a sharp two-session sell-off.
The rebound came after precious metals suffered their steepest two-day decline in decades, before investors returned to the market in search of value.
Spot gold climbed 5.8 per cent to US$4,935.56 an ounce by 0818 GMT, recovering from Monday’s low of US$4,403.24. The metal had peaked at US$5,594.82 just two sessions earlier.
US gold futures for April delivery jumped 6.6 per cent to US$4,958.50 an ounce.
Kyle Rodda, senior market analyst at Capital.com, said prices were now returning to more reasonable levels after weeks of extreme volatility.
“The market had been behaving irrationally. Current prices bring gold and silver back to where they were in mid-January,” he said.
Gold posted nearly a 13 per cent gain in January, its strongest monthly performance since November 2009, while silver hit a record high of US$121.64 last week.
Silver rose 10 per cent to US$87.40 an ounce on Tuesday, after plunging 27 per cent last Friday — its biggest one-day fall on record — followed by another six per cent decline on Monday.
The earlier sell-off was linked to the nomination of Kevin Warsh as the next US Federal Reserve chair by President Donald Trump.
Rodda said markets viewed the nomination as supportive of the US dollar, which weighed heavily on precious metals.
In addition, CME Group raised margin requirements on metal futures, intensifying last week’s sell-off.
Meanwhile, the US Bureau of Labor Statistics announced that the January employment report would be delayed due to a partial government shutdown.
In other metals, platinum rose 5.7 per cent to US$2,242.55 an ounce, while palladium gained 5.3 per cent to US$1,811.39.
Market analysts expect precious metals to remain volatile but believe the latest rebound could mark the beginning of another upward trend, with new record highs possible later this year.
-wilayah.com.my
