Gold and silver rebound after historic wipeout as analysts say thematic drivers stay intact
One kilogram and five hundred gram gold bars alongside one kilogram silver bars at The Vaults Group gold dealers in Barcelona, Spain, on Monday, April 28, 2025.
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Gold and silver prices rebounded on Tuesday after a historic selloff; analysts suggested that the recent corrections were a resetting of positioning rather than a sustained decline.
Gold prices continued to recover after falling on Monday, falling almost 10% on Friday; the steepest single-day declines in decades. Silver also rebounded modestly from a nearly 30% crash that marked its worst daily performance since 1980.
Spot gold rose as much as 4 percent on Tuesday and was last traded more than 2 percent higher at $4,771.76 per ounce. Gold futures in New York were last up 3% at around $4,791.
Spot silver rose as much as 7.8% and last traded at $81.3 an ounce, up 2.6% on Tuesday. Silver futures in New York rose 7% to $82.67 an ounce.
The rebound comes as investors reassess whether the rout signals a structural turning point or an exaggerated response to short-term catalysts.
While the scale of the sell-off raises new questions about market positioning, history shows these are short-term catalysts, strategists at Deutsche Bank said. Signs of increased speculative activity have been increasing for months, but these alone were insufficient to explain the magnitude of last week’s movement, the bank said.
“The adjustment in precious metal prices has outweighed the importance of the apparent catalysts. Moreover, investor (governmental, institutional, individual) intentions towards precious metals have not changed, possibly for the worse.”
Gold and silver prices recover after sharp sales
The selloff was triggered by a number of factors, including a rebound in the U.S. dollar, shifts in expectations for Federal Reserve leadership after President Donald Trump nominated Kevin Warsh to be the next Fed chairman, and a position correction ahead of the weekend.
Deutsche Bank said the broader investment situation for gold and silver remained intact.
“Gold’s thematic drivers remain positive and we believe investors’ rationale for gold (and precious) allocations will remain unchanged. Conditions do not appear poised for a permanent reversal in gold prices, and we draw some contrasts between today’s situation and the context of gold’s weakness in the 1980s and 2013.”
Barclays struck a similar tone, acknowledging overheated technicals and stretched positioning but saying a broader “bid” for gold could remain resilient amid geopolitical and policy uncertainties and reserve diversification themes.
Silver’s run was more dramatic; It reflects a smaller market, higher volatility and heavier retail participation. However, some analysts still think that the white metal is in an uptrend.
“Speculative positioning has certainly played a role in the short term. Silver has attracted more retail participation than gold, making it much more susceptible to fast-moving sentiment and short-term trading,” said eToro market analyst Zavier Wong.
But Wong added that blaming the entire move on speculation might be “too simplistic.” Silver has real industrial demand, particularly in connection with data centers and areas linked to AI infrastructure.
A study published in January predicted that global silver demand will increase this decade, largely due to solar photovoltaics and the transition to more silver-dense cell technologies. Total demand is forecast to reach 48,000 tonnes to 54,000 tonnes per year by 2030, while supply is only expected to increase to around 34,000 tonnes; This means that only 62% to 70% of demand will be met.
The solar industry alone is seen consuming 10,000-14,000 tonnes annually, or up to 41% of global supply.
“That demand hasn’t gone away. What we’re seeing here is silver moving ahead of itself, which is something silver always does in strong phases,” Wong said.
