Gold and silver prices experienced a notable recovery on Tuesday following a historic sell-off that had shaken global markets. Spot gold surged approximately 5.5%, reaching $4,921.29 per ounce, while futures in New York climbed over 6% to around $4,936.60 as of 4:48 a.m. ET. Silver saw even more dramatic gains, with spot prices rising over 9% to settle at approximately $86.70 per ounce and futures increasing 12% to $86.49.
This rebound comes on the heels of a steep decline on Monday, which followed a staggering nearly 10% drop for gold last Friday and a breathtaking 30% plunge in silver prices-the worst single-day performance for the metal since 1980. The uptick in precious metals also buoyed mining stocks and exchange-traded funds (ETFs) globally. The Stoxx 600 Basic Resources index in Europe, which includes leading mining firms, rose more than 2% on Tuesday morning. Major London-listed companies such as Rio Tinto (+2.2%), Anglo American (+3.8%), and Antofagasta (+3.5%) saw significant early gains, while Fresnillo, the world’s top silver producer, traded up 4.6%.
In U.S. markets, ETFs like the ProShares Ultra Silver saw a 16.1% increase in pre-market trading, while the abrdn Physical Silver Shares ETF gained around 8.5%. The iShares Silver Trust (SLV)—a focal point of retail investor enthusiasm-also rose 8.6% by early Tuesday. Shares of U.S.-listed gold and silver mining companies reflected this positive sentiment, with Endeavour Silver up 9.2% and Coeur Mining increasing 9.4%. Hecla Mining and First Majestic Silver both climbed more than 8%.
Investors now grapple with whether this rally signals a structural shift in the market or if it merely reflects a correction from extreme volatility. Analysts at Deutsche Bank suggest that while there have been signs of elevated speculative activity, the recent market actions likely stem from short-term factors rather than a fundamental turn. “The adjustment in precious metal prices overshot the significance of its ostensible catalysts,” they noted, emphasizing that investor sentiment towards precious metals has not soured significantly.
The sell-off was triggered by multiple factors, including a recovery in the U.S. dollar, shifts in expectations about Federal Reserve leadership, and cautious position adjustments ahead of the weekend. Nonetheless, Deutsche Bank maintains that the underlying investment case for gold and silver remains robust, citing stable thematic drivers for gold amid ongoing geopolitical and economic uncertainties.
Barclays echoed similar sentiments, acknowledging the overheated technicals but asserting that gold’s “bid” should remain resilient against prevailing market dynamics. The volatility of silver, attributed to its smaller market and increased retail participation, raises both concern and opportunity for traders. Market analyst Zavier Wong of eToro highlighted that while speculation plays a significant role in silver’s movements, genuine industrial demand-notably from sectors like solar energy and artificial intelligence-will fuel its long-term growth. A recent forecast predicts global silver demand could reach 48,000 to 54,000 tonnes annually by 2030, while supply is only expected to rise to about 34,000 tonnes.
“This demand hasn’t gone away. What we’re seeing is silver running ahead of itself, which it has historically done during strong phases,” Wong remarked. Overall, market participants remain cautious but hopeful as they reassess their investment strategies in precious metals amid ongoing fluctuations.
Original Source: https://www.cnbc.com/2026/02/03/gold-and-silver-rebound-after-historic-wipeout-as-analysts-say-thematic-drivers-stay-intact-.html
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Publish Date: 2026-02-03 15:46:00
