Emre Yumlu 
Precious metals have regained upward momentum following a period of intense volatility. After experiencing one of their sharpest short-term corrections in years, both gold and silver are once again moving higher. This rebound has revived a key question among investors: is the recent recovery the start of a renewed uptrend, or merely a temporary reaction after a steep decline?
Gold and Silver Back in Positive Territory
According to the latest market data, gold is trading near $5,060, posting a daily gain of approximately 2.30%.
Silver has also joined the recovery, rising 2.47% on the day to trade around $87.42.
These gains come just days after precious metals suffered heavy losses, highlighting the fragile balance between bullish sentiment and sudden shifts in market expectations.
What Triggered the Recent Sell-Off?
The earlier downturn was largely driven by changing expectations around leadership at the US Federal Reserve. With Jerome Powell expected to step down in May, Kevin Warsh has emerged as a potential successor, prompting a reassessment across financial markets.
Investors anticipated that Warsh could be more supportive of interest rate cuts while simultaneously pushing for a more aggressive reduction of the Fed’s balance sheet. This combination was perceived as unfavorable for non-yielding assets such as gold and silver, increasing selling pressure. Adding to the downside, CME Group raised margin requirements for precious metals futures, amplifying liquidation across derivatives markets.
Warnings About Overheated Price Action Proved Timely
Prior to the sell-off, gold and silver had rallied sharply, supported by speculative momentum, geopolitical tensions, and concerns over the Federal Reserve’s independence. However, several market observers warned that prices were rising too quickly to be sustainable.
Those warnings materialized abruptly. Silver recorded one of its largest single-day declines on record, while gold experienced its steepest daily drop since 2013. The sudden reversal underscored how quickly sentiment can shift when positioning becomes crowded.
Is the Bull Market Still Intact?
Despite the recent turbulence, the broader outlook for precious metals remains constructive. Many analysts argue that the latest pullback represents a corrective phase rather than the end of the bull market. Expectations remain that gold could revisit and potentially exceed previous highs later this year.
Jeffrey Christian, managing partner at CPM Group, notes that ongoing economic uncertainty and political risks continue to drive long-term demand for safe-haven assets. He suggests that prices may resume their upward trajectory at a more measured and sustainable pace.
Taken together, the latest rebound in gold and silver may reflect more than a short-lived bounce, pointing instead to a broader bullish structure that remains intact despite short-term volatility.
This content does not constitute investment advice.
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