Global spot gold prices rose by 287 USD to 4,945 USD per ounce at the close of trading on 3/2. This marks gold's strongest single-day increase since November 2008. The market rebounded after three consecutive sessions of decline, as investors bought the dip, confident in gold's strong fundamental factors. By the morning of 4/2, prices had further climbed to 4,992 USD.
Silver prices also increased by over 7% to 85 USD per ounce on 3/2. This follows a 27% decline last week and an additional 6% drop earlier this week.
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Global gold prices rebound after three consecutive sessions of decline. Chart: Kitco
Peter Grant, Deputy Director of Zaner Metal, commented on the recent market movements: "I believe the recent decline is merely a correction within a long-term uptrend. At this point, we can expect corrections, with support at 4,400 USD and resistance at 5,100 USD". He affirmed that many factors supporting the market in recent years are still present.
The precious metals market saw a sharp decline after Kevin Warsh was nominated by Trump to be the next Chairman of the Federal Reserve (Fed), succeeding Jerome Powell whose term ends in May. Investors anticipated Warsh would favor lower interest rates but also shrink the Fed's balance sheet, a move seen as unfavorable for precious metals. Additionally, CME Group's increased margin requirements for precious metals futures contracts further pressured prices.
Despite these factors, most analysts expect the market to continue its upward trend. Gold prices could reach new highs by the end of this year. Jeffrey Christian, Director of CPM Group, noted: "Prices will continue to rise in the long term, at a more sustainable pace, as investors remain deeply concerned about economic and political instability". Gold tends to perform well in environments of uncertainty and low interest rates.
Beyond gold and silver, other precious metals also saw price increases. Platinum rose by 3,4% to 2,194 USD per ounce, while palladium gained 0,4%, closing at 1,727 USD.
Ha Thu (according to Reuters, Kitco)
