Gold And Silver Rebound Strongly After Dramatic Plunge, Bolstered By Safe-Haven Appeal
Precious metals have staged a notable recovery in recent trading sessions, with gold and silver prices climbing following a sharp correction that marked one of the steepest declines in decades.
In international markets, Comex gold edged higher by 0.3% to close at $4,950.80 per ounce, having briefly surpassed the $5,000 level earlier in the session. The yellow metal had experienced extreme volatility, surging near $5,600 an ounce in late January before plummeting to $4,403 on Monday amid heavy selling pressure. Silver posted a stronger gain of 1.3% in the latest update, contributing to anticipated weekly advances for the white metal.
The rebound comes after gold posted its sharpest two-day drop since 1983, only to rebound forcefully to nearly $5,100 on Wednesday in one of its strongest single-session performances in over 17 years. Market participants attribute the renewed momentum to persistent safe-haven demand driven by geopolitical uncertainties, a weakening US dollar, escalating government debt concerns, potential trade disruptions from tariffs, and broader trends toward de-dollarisation.
Analysts from Deutsche Bank noted that gold’s core thematic drivers remain firmly positive, with investor rationale for holding precious metals unlikely to shift. David Russell, CEO of GoldCore, highlighted the current environment as one where global economic and geopolitical institutions face unprecedented tests.
A Reuters survey of 30 analysts and traders projects a median Comex gold price of $4,746.50 per troy ounce for 2026—the highest forecast in the poll’s history since 2012—up from an earlier October projection of $4,275. The outlook is underpinned by sustained central bank purchases, including ongoing acquisitions by institutions like India’s Reserve Bank (RBI), which ranks among the world’s top gold reserve holders.
Domestically, brokerage Nuvama Professional Clients Group anticipates MCX gold testing Rs 1.75 lakh per 10 grams in the near term, with silver potentially approaching Rs 3.3 lakh per kg. The rally follows a period of intense profit-taking triggered in part by US President Donald Trump’s nomination of Kevin Warsh as the next Federal Reserve chair, which had fueled earlier speculation and sell-offs.
Experts emphasize that underlying supports—such as geopolitical risks and robust central bank demand—are expected to persist through 2026, positioning gold and silver for a potentially record-setting year despite short-term fluctuations. Investors continue to monitor these dynamics closely amid the metals’ pronounced volatility after nearly doubling in value over the past year.