Gold Surges Above $5,000, Silver Jumps Sharply as Buying Appetite Returns

Global Markets | EcoPulse24

Gold prices returned to trading above $5,000 per ounce during today’s session, supported by dip-buying after a sharp correction earlier in the week and escalating geopolitical tensions, which boosted safe-haven demand.

In the latest trading, gold recorded $5,081.18 per ounce, up by $134.79 or 2.73%, extending its rebound after jumping more than 6% in the previous session - the yellow metal’s largest daily gain since 2008.

Additional price support came as geopolitical concerns resurfaced following U.S. forces shooting down an Iranian drone near a carrier in the Arabian Sea, though the White House confirmed diplomatic efforts were ongoing, with U.S.–Iran talks scheduled for the end of the week.

Meanwhile, market bets on a rapid pace of U.S. interest rate cuts eased after Kevin Warsh was nominated to chair the Federal Reserve, though pricing still reflects expectations for two cuts in 2026, one likely mid-year.

Silver continued its gains for the second consecutive session, posting one of its strongest rebounds following a historic sell-off. Silver is currently priced at $90.124 per ounce, up $5.038 or 5.92%.

The rise in silver followed the easing of forced liquidations that wiped out about 40% of its value in just two days, with buyers returning to take advantage of lower prices, alongside continued support from structural supply deficits and steady industrial demand.

EcoPulse24 Analysis:
Gold’s return above the $5,000 mark reflects the market’s continued view of the metal as a primary hedge in an environment marked by heightened political risk and monetary uncertainty, despite diminished expectations for rapid rate cuts. Dip-buying revealed strong underlying demand awaiting sharp corrections to re-enter the market.

In contrast, silver’s performance remains more volatile, with its sharp rebound driven by a combination of halted forced sales, renewed speculation, and fundamental support from supply deficits and industrial demand. However, this swift recovery does not negate silver’s higher susceptibility to sharp swings compared to gold.

Overall, the current performance suggests the precious metals market has entered a repricing phase after the recent shock, with the medium-term trend hinging on U.S. monetary policy developments and geopolitical events in the coming weeks.