Gold prices recovered sharply, exhibiting gains for a second consecutive session to surpass $5,000 per ounce, as bargain hunters re-entered the market in the wake of a dramatic slide from record highs. The jump came amid renewed appetite for risk and a softer US dollar, drawing investor focus back to precious metals.
Additionally, investor concerns also emerged over potential interruptions in diplomatic efforts to ease tensions between the United States and Iran, following reports that a U.S. military operation brought down an Iranian drone and armed boats approached a U.S.-flagged ship in the Strait of Hormuz.
Early Wednesday trading saw bullion jump around 2% after a turbulent retreat drove prices down some 12% from their late January peak. Silver followed the upward trend, while platinum and palladium also posted increases.
Daniel Ghali, a senior commodity strategist at TD Securities, noted that the liquidation pressure, which triggered an intense round of selling across precious metals, appears to be easing, while the recent volatility could continue to keep some retail investors out of the market for now.
The dramatic moves in precious metals followed a powerful rally in January, which was buoyed by heightened speculative trading, geopolitical risks, and concerns over the U.S. central bank’s independence.
As of 10:16 AM (Bangkok time) on Wednesday, gold traded at 5,051.34 per ounce, representing an increase of 2.28%.
