Gold and Silver Rebound, but Investors Remain on Edge

Gold and silver have made significant gains since their sharp decline in the spring. Gold has risen by over 14% to about $4,380 per troy ounce at the Aug. 21 close, while silver is up nearly 20% to $69.50 an ounce.

The precious metals had surged upward through 2025 until an abrupt halt at the end of January due to rule changes by futures exchanges and the nomination of Kevin Warsh as the new chairman of the Federal Reserve Board.

However, in the late spring and early summer, three factors combined to give gold and silver new life: crude oil prices peaked, the war in the Middle East lapsed into a stalemate, and the Fed has not yet raised interest rates.

Treasury Secretary Scott Bessent's announcement that the United States would buy back long-dated Treasury bonds also provided a catalyst for the metals' gains. However, yields jumped back up on Aug. 20 and Aug. 21 as analysts said the campaign wouldn't work.