After the biggest collapse in modern history, gold and silver post their largest one-day gains ever.

After the biggest collapse in recent history, gold and silver are finding their way back, posting their largest one-day gains on record.

Spot gold last traded at $4,950 an ounce, up more than 5% during the session, while spot silver traded at $87.82 an ounce, rising 11%.

Gold prices in the local market also rose by about EGP 275 during today’s trading, with the price of 21-karat gold reaching around EGP 6,725, while the global ounce gained roughly $292 to reach nearly $4,947, according to a report by Ai Sagha.

The report noted that the price of 24-karat gold reached about EGP 7,686, 18-karat gold was around EGP 5,764, and the gold pound traded at approximately EGP 53,800.

Meanwhile, a report from Safe Haven Center stated that the price of 999-grade silver rose by about EGP 9, reaching around EGP 171, while the global ounce increased by roughly $4 to about $88.

The price of 925-grade silver reached EGP 158, 800-grade silver was around EGP 136, and the silver pound remained at EGP 1,264.

Some analysts note that the recovery in precious metals confirms a growing consensus that the recent selling pressure was driven by short-term speculative positions and temporary trading momentum, rather than a fundamental market shift.

One German bank has been clear in its optimistic stance. On Monday, Michael Hsueh, Head of Metals Research at Deutsche Bank, said that despite ongoing high market volatility, the investment case for gold remains unchanged.

Hsueh added that the market is still on track to reach $6,000 per ounce by the end of the year.

He said:

"Gold’s fundamental drivers remain positive, and we believe investors’ rationale for allocating to gold and precious metals has not changed. Conditions do not appear conducive to a sustained reversal in gold prices, and we see clear contrasts between the current situation and the periods of gold weakness in the 1980s and in 2013."

Hsueh also pointed out that Chinese investment demand will continue to be a key pillar supporting gold, noting that even as Western prices fell, premiums on the Shanghai Gold Exchange remained elevated.

Optimism is not limited to Deutsche Bank. Commodity analysts at Société Générale also confirmed on Monday that their fundamental outlook for precious metals remains unchanged.

Ipek Ozkardeskaya, market analyst at Swissquote, said she remains bullish on gold.

She stated:

"It appears the worst may be behind us. With leveraged speculative positions flushed out, investors may feel they are returning to a freshly cleaned playground, albeit cautiously.

The factors supporting gold prices since last year remain firmly in place: ongoing trade and geopolitical uncertainty; G7 debt dynamics appear increasingly unsustainable and are likely to worsen — not only in the United States but also in Japan and Europe amid rising defense spending. Demand for the US dollar, major currencies, and sovereign bonds remains fragile, which should continue to support the bullish case for hard commodities."

Despite the potential for higher prices, Ozkardeskaya warned of increasing risks in the market, saying:

"Traditionally, gold is seen as a hedge against market risk. But it is now behaving like a risky asset — and at times like a meme stock — and its negative correlation with risk assets has faded. Highly leveraged speculative positions are largely responsible for this unusual behavior. The problem is that most diversified portfolios have exposure to gold, meaning this volatility affects all risk profiles, which is concerning."