Editor’s Note
This article discusses recent volatility in precious metals markets, highlighting a significant single-day price surge for silver and gold. It notes analyst perspectives suggesting this may represent a corrective phase preceding a potential new bull market.
Amid an extremely volatile week for precious metals markets, the price of silver rose approximately 7% on February 9 (US time). Gold prices also rose similarly. Among analysts, there is a view that precious metals prices could soon surge again towards record highs.
As of 1:55 PM Eastern Time on the 9th, the price of silver was $82.45, up about 7%. However, it had fallen slightly from the day’s high of $83.47 reached earlier.
The price of gold was up about 2% to approximately $5080.30 at the same time, though it was slightly below the day’s high of $5106.80 recorded earlier.
While gold and silver have recovered some of the sharp losses from February, they remain far from their all-time highs of over $121 for silver and $5600 for gold.
Meanwhile, Australia-based bank ANZ noted that investors have “reaffirmed their long-term bullish outlook” on precious metals.
Gold and silver rose on the 9th as the US dollar fell. Pepperstone’s Dillin Wu stated in a note that the dollar’s decline, alongside geopolitical uncertainty and scheduled economic data releases later in the week, is one factor supporting higher precious metals prices.
Gold and silver have been swinging wildly since their sharp plunge from record highs several weeks ago. In late January, their historic rally faced headwinds after President Donald Trump nominated Kevin Warsh as the next Federal Reserve Chair candidate, leading to gold and silver recording their worst day in decades. Warsh is seen as less likely than other Fed chair candidates to implement interest rate cuts, which are considered a factor that could push precious metals prices higher.
Precious metals prices recovered somewhat early last week, with gold posting its largest one-day gain in about 20 years, but turned lower again on the 5th. That day, silver plunged over 10% and gold fell over 2%. Ross Norman, CEO of Metals Daily, attributed the volatility in the latter part of last week to “excessive and frenzied Chinese speculation,” stating that some investors are starting to distance themselves from a situation that “feels more like a casino than a market.”