Precious metals stage sharp recovery after historic sell-off as investor appetite steadies
Shares in Endeavour Mining PLC and Fresnillo PLC led the FTSE 100 in early trading on Tuesday, recovering ground lost in last week’s sell-off as gold and silver prices bounced sharply.
The rebound helped stem broader investor losses following a volatile week for precious metals. Spot gold rose more than 6%, but was still below $5,000 an ounce, reversing part of its nearly 10% single-day fall on Friday, its steepest decline in decades. Silver gained almost 10% to $87, with futures in New York rising 13%.
Market sentiment has been shaken by a stronger US dollar and renewed uncertainty around Federal Reserve policy following President Donald Trump’s nomination of Kevin Warsh as Fed chair.
However, analysts noted that structural drivers, including reserve diversification, geopolitical risk and industrial demand, continue to support the investment case for both metals.
Silver’s recent volatility has been more severe, reflecting its smaller market and higher retail participation.
Tuesday’s rally came as relief to precious metals producers, with investors rotating back into the sector. Endeavour and Fresnillo shares rose 5% and 4% respectively on renewed optimism, following a month in which silver alone had surged more than 100% from its recent lows.