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Turnaround Tuesday Sees Precious Metals Rebound
Welcome to what market participants are calling Turnaround Tuesday. After experiencing significant declines on Monday, both precious metals and Asia-Pacific stock markets are staging a notable recovery in today's trading session.
Gold has surged 4.5% this morning to reach $4,877 per ounce, representing a substantial recovery from yesterday's level of $4,403 per ounce. Meanwhile, silver has demonstrated even stronger momentum, picking up 6.5% to trade at $84.70 per ounce.
Market Context and Recent Volatility
Despite today's encouraging gains, gold remains approximately 12% below last week's record highs. This follows what market analysts describe as the precious metal's worst trading day since the early 1980s on Friday, while silver experienced its most severe intraday collapse in recorded history during the same session.
There is growing optimism among market participants that the worst of what has been termed the "metals meltdown" may now be behind us. This follows the exit of some highly speculative, leveraged traders from the market amid the turbulence of recent days.
Analyst Perspective on Market Recovery
Ipek Ozkardeskaya, senior analyst at Swissquote, offers valuable insight into the current market dynamics. She observes: "With leveraged speculative positions flushed out, investors may feel they are returning to a freshly cleaned playground, albeit cautiously. The long-term outlook for gold remains bullish."
Ozkardeskaya further elaborates on the fundamental factors supporting precious metals: "The factors supporting gold prices since last year remain firmly in place: trade and geopolitical uncertainty persists; G7 debt dynamics look increasingly unsustainable and are likely to worsen — not only in the US with the 'Big, Beautiful Bill', but also in Japan and in Europe amid rising defence spending."
Today's Economic Calendar Highlights
The financial markets will be monitoring several key economic events throughout the day:
- 9.45am GMT: Treasury Committee hearing on the government's financial inclusion strategy
- 8:00am GMT: UK grocery inflation figures for January
- 3pm GMT: US JOLTS job openings report
- 3pm GMT: Chief Secretary to the Treasury to give evidence to the Economic Affairs Committee
Market participants will be closely watching these developments for further indications about economic direction and policy responses that could influence precious metals and broader financial markets.
