Gold prices surged on Tuesday, with silver and platinum also posting strong gains, as precious metals recovered following two days of sharp, volatility-driven losses.
By 08:25 ET (13:25 GMT), spot gold had climbed 5.8% to $4,931.00 an ounce, while April gold futures advanced 6.4% to $4,952.34 an ounce. Spot silver jumped more than 14% to $88.338 an ounce, and spot platinum rose 5.9% to $2,230.10 an ounce.
Precious metals rebound after profit-taking
Gold had plunged to around $4,400 an ounce on Monday, erasing nearly $1,200 an ounce from the record high reached just last week. The selloff was largely attributed to aggressive profit-taking after U.S. President Donald Trump nominated former Federal Reserve governor Kevin Warsh to lead the central bank.
The nomination eased a key source of market uncertainty, reducing demand for safe-haven assets, while Warsh is widely seen as less dovish than investors had anticipated. Even so, gold showed signs of resilience late on Monday, finishing the session well above its lows.
“Further stabilisation will be determined by the mentality of the retail market. Physical demand from this sector has been strong in recent months and could provide a strong backdrop to the selling from leveraged trades in the institutional market,” ANZ analysts said in a note, adding that gold’s underlying fundamentals remain supportive.
“Central bank gold purchases should be strong amid strained international relations, while concerns about Fed independence and rising risk premiums on US assets may add volatility that supports investment demand for gold through 2026,” the analysts added.
ING, however, cautioned that near-term risks have not fully disappeared. “Near-term downside risks persist as year-to-date gains are almost fully unwound, and some investors may continue to take profits,” the bank said. “But absent a material shift in fundamentals, the pullback looks more like a correction than the start of a new trend. Volatility will remain elevated.”
Warnings of speculative excess emerge
Despite the rebound, some strategists are increasingly wary of the speed and scale of the recent rally. Peter Berezin, chief global strategist and director of research at BCA Research, warned that prices may have moved “too far, too fast.”
In a note to investors, Berezin outlined a long-term scenario in which gold could theoretically lose most of its value. He argued that the current rally reflects genuine concerns about currency debasement, driven by rising U.S. budget deficits, expanding debt levels and heavy foreign ownership of U.S. assets, which has left the dollar vulnerable as investors trim exposure.
At the same time, foreign central banks have continued to build gold reserves. “While the physical volume of gold purchases has dipped, the dollar value continues to increase,” Berezin wrote.
However, he pointed out that inflation indicators have yet to validate the debasement thesis. Long-term inflation expectations remain relatively stable, and Bitcoin — often described as “digital gold” — has so far failed to participate in the rally.
Copper regains ground
Copper prices also moved higher on Tuesday, recovering from recent declines. Benchmark copper futures on the London Metal Exchange rose 4% to $13,451.00 a ton, while COMEX copper futures gained 4.3% to $6.0780 a pound.
Unlike precious metals, copper’s losses have been relatively contained, supported by a constructive demand outlook linked to expanding energy infrastructure and ongoing data center construction. ANZ analysts noted that Chinese buyers stepped in last week to take advantage of lower prices, with inventories also being built ahead of the Lunar New Year holiday.
As the world’s largest copper importer, China is expected to remain a key driver of demand, particularly as Beijing continues to roll out additional stimulus measures.
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