GOLD and SILVER PRICES stemmed and reversed some of yesterday's steep drop in London trade Tuesday, rallying from near 3-week lows but leaving the 'safe haven' precious metal with its sharpest 1-day drop since May 2022.

With silver back above $27 per Troy ounce – a 33-month high when reached in mid-March – the price of gold recovered the $2300 level after falling 5.7% from Friday 12 April's new all-time gold top above $2400.

"Yes, it's been a pretty deep 1-day retraction but you've got to put things in perspective," says strategist Nicky Shiels of Swiss bullion refining and finance group MKS Pamp, speaking to CNBC overnight.

"Since the October 7th Hamas attacks gold has been up in a straight line $600...[And] gold went up as [expectations for] Fed rate cuts went down, from 7 cuts to two [as forecast across 2024 by the interest-rate market].

" Geopolitics put gold into overbought territory but this is about so much more. Real interest rates are sitting at 2%...so this is a regime shift" for how the precious metal trades, shrugging off its historically strong inverse relationship with the cost of borrowing once you account for inflation.

The real rate of interest implied by 10-year US Treasury inflation-protected bonds rose Tuesday close to last week's 5-month high of 2.24% per annum.

Read the full article at Bullion Vault using this link:  Real Rates Rise But Gold and Silver Rally from Steep 1-Day Drop | Gold News (bullionvault.com)