Gold and Silver Prices Rise: A New Era Begins!

Strong Rally in Gold and Silver Begins

On Friday and at the beginning of the week, after a strong wave of selling triggered by Kevin Warsh emerging as a candidate for Federal Reserve chair and CME Group tightening margin requirements, gold and silver prices rose again today.

Reaction Buying in Precious Metals

In the spot market, gold reached $4,812.66 with a 3.43% increase, while silver hit $83.12 with a 4% premium. Analysts are watching $4,852 as a resistance level for gold and $4,755 as a support level. This increase represents a significant reaction buying in precious metals.

What Analysts Are Saying?

Capital.com Senior Market Analyst Kyle Rodda considers the recent rise as a healthy correction. Rodda points out that markets have made excessive and illogical pricing in recent weeks, stating that the current price levels have brought gold and silver back to the price range of the second half of January.

Warsh's Candidacy and the U.S. Agenda

In January, gold gained approximately 13%, marking the strongest monthly performance since November 2009, while silver increased by 19%. Rodda emphasizes that Warsh's candidacy is perceived as a reliable choice by the markets, which supports the dollar and thus ends the strong rally in precious metals.

Meanwhile, the U.S. Department of Labor announced that due to the partial government shutdown, the January employment report will not be published this Friday. The final vote on the budget in the House of Representatives is planned for Tuesday. Additionally, the Department of Commerce budget being approved by the end of September signals that long data interruptions experienced last year may not be repeated this time.