Gold surges back above $5,000 as dip buyers charge back in after historic bloodbath

Spot gold was trading around $5,072 per troy ounce at 11:10 p.m. ET on Tuesday, extending gains from the previous session, when prices jumped more than 6%.

“The recovery in metals coincided with a broader improvement across financial markets,” wrote Ewa Manthey, a commodities strategist at ING, adding that the rebound also came as the US dollar gave back some of its earlier gains from the initial phase of the sell-off.

The reversal came after a brutal collapse in gold prices on Friday and Monday, following a record high above $5,500 per troy ounce on Thursday.

The selloff was magnified by President Donald Trump’s nomination of Kevin Warsh as the next Federal Reserve chair. Warsh is widely viewed as the most hawkish candidate, which drove the US dollar sharply higher and sparked aggressive profit-taking in gold.