After facing intense selling pressure, gold and silver prices recorded a strong rebound of more than 2 percent on Tuesday.

The recovery came after prices fell to a one-month low due to the nomination of Kevin Warsh as US Federal Reserve chair and tighter margin requirements announced by CME Group.

According to Reuters, spot gold rose 2.2 percent to $4,767.33 per ounce after touching its lowest level in nearly a month on Monday. It is worth noting that gold had reached a record high of $5,594.82 per ounce last Thursday. US gold futures for April delivery jumped 3 percent to $4,791.10 per ounce.

Market analysts said current prices reflect more reasonable levels, as the market experienced extreme volatility over the past few weeks. They added that the latest rebound has brought prices close to levels seen in the second half of January.

Gold prices rose nearly 13 percent in January, marking the biggest monthly gain since November 2009, while silver surged up to 19 percent. However, a stronger US dollar following Warsh’s nomination and higher margin requirements increased pressure on precious metals.

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CME Group raised margin requirements on precious metals futures after markets closed on Monday. Meanwhile, the US Labor Bureau said the January jobs report will not be released on Friday due to a partial government shutdown.

Investors expect the Federal Reserve to cut interest rates at least twice in 2026. Gold, which does not offer yields, usually performs better in a low interest rate environment.

Spot silver climbed 2.8 percent to $81.61 per ounce, while platinum edged slightly higher and palladium saw a minor decline.