Gold and silver climbed for a second straight session Wednesday, consolidating gains after Tuesday's biggest single-day rally since 2008.
Gold traded near $5,000 per ounce while silver approached $88 following a historic crash that wiped out as much as 40% of silver's value in just two days.
Tuesday saw gold surge more than 6% after falling to $4,405 on Monday. Silver jumped 10% after plunging 27% Friday and another 6% Monday.
The recovery comes as forced liquidations appear to have subsided. Dip buyers stepped in to capitalize on lower prices after the sharp pullback.
What Happened
Gold pared earlier gains Wednesday to trade just under the $5,000 mark. Silver climbed above $88 per ounce during the session.
The selloff followed President Donald Trump's January 30 nomination of Kevin Warsh as Federal Reserve chair. Warsh is widely viewed as more hawkish than other contenders, raising concerns about tighter monetary policy.
Geopolitical tensions supported safe-haven demand Wednesday after U.S. forces shot down an Iranian drone near the aircraft carrier USS Abraham Lincoln in the Arabian Sea.
The White House confirmed U.S.-Iran nuclear talks remain scheduled for Friday.
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Economic Data
Private-sector job growth came in well below expectations Wednesday. The ADP report showed 22,000 jobs added in January, less than half the 45,000 consensus forecast.
The weak data arrived as the official January nonfarm payrolls report faces delays due to the partial government shutdown. Manufacturing has lost jobs every month for almost two years, according to ADP.
JPMorgan analysts expect gold to reach $6,300 per ounce by end-2026, a 30% gain from current levels. The bank cited gold's role as a portfolio hedge and stronger-than-expected investor demand.
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