Gold and silver rebound after historic wipeout as analysts say thematic drivers stay intact

Core Viewpoint - Gold and silver prices have rebounded after a significant sell-off, indicating that the recent corrections may be more of a positioning reset rather than a long-term downturn [1][2][4]. Price Movements - Gold prices increased by over 2% to $4,771.76 per ounce after a nearly 10% drop on Friday, marking one of the steepest declines in decades [2]. - Silver prices saw a recovery of 2.6% to $81.3 per ounce after a dramatic 30% collapse, which was its worst one-day performance since 1980 [3]. Market Analysis - Analysts suggest that the recent sell-off was driven by short-term catalysts rather than a structural market shift, despite the significant scale of the decline raising questions about market positioning [4]. - Deutsche Bank strategists noted that while there has been an increase in speculative activity, it does not fully account for the extent of the recent price movements [4]. Investor Sentiment - The adjustment in precious metal prices has exceeded the impact of its apparent catalysts, indicating that investor intentions across various sectors (official, institutional, individual) have likely not deteriorated [5].