Gold Claws Back Some Ground After Dramatic Unwinding of Rally

Gold rose, clawing back some losses after the abrupt unwinding of a record-breaking rally that had driven prices down 13% in just two days. Silver also advanced.

Spot gold climbed about 1% to above $4,700 an ounce in early trading, after falling almost 5% in the previous session to extend a slump on Friday that was the steepest in more than a decade. Silver climbed as much as 2.4% to top $81, after sliding 7% on Monday and posting a record intraday drop in the previous session.

Precious metals had surged to records last month in a rapid ascent that caught even seasoned traders by surprise. Investors piled into gold and silver on renewed concerns about geopolitical upheaval, currency debasement, and threats to the Federal Reserve’s independence. A wave of buying from Chinese speculators supercharged the rally, but this flipped on Friday as the US dollar rebounded.

Gold rose 1% to $4,709.34 an ounce as of 7:13 a.m. in Singapore. Silver advanced 2% to $80.89. Platinum and palladium also rose. The , a gauge of the US currency, ended the previous session up 0.3%.