Quick overview

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Dip buyers returned to the market following a week of unusually high volatility in precious metals, and gold rose above $5,000 an ounce.

Resilient official demand, a key element of the extended bull run that preceded the recent rout, was highlighted by data released over the weekend, which showed the Chinese central bank extended gold purchases for a 15th month.

The People’s Bank of China will make these kinds of acquisitions, with comparatively modest buys in asset diversification without raising prices.

Bullion recovered some ground following a historic thrashing at the end of last month, rising as much as 1.7 percent in Asian trading on Monday. It has recovered about half of the losses since the metal fell from an all-time high hit on January 28. Silver also made progress.

Concerns about the Federal Reserve’s independence, the devaluation trade, and increased geopolitical risks had all contributed to the record-breaking rise in precious metal prices.

A surge of speculative buying fueled the run before gold and silver crashed at the end of last month. US Treasury Secretary Scott Bessent blamed last week’s erratic price fluctuations on “unruly” trading in China

Banks and asset managers such as Goldman Sachs Group Inc. and Deutsche Bank AG have experienced erratic trading for the past week following the historic reversal.