Gold and silver prices have seen a notable rebound after a drastic drop earlier in the week. On Tuesday, the Multi Commodity Exchange (MCX) reported that silver prices fell by 5.58% and gold prices decreased by 2.45%. However, a recovery took place on Wednesday, with gold rising by 1.30% to trade above 1.53 lakh Rupees and silver climbing by around 4% to trade over 2.38 lakh Rupees. This increase reflects a broader market trend where both gold and silver exchange-traded funds (ETFs) also appreciated by approximately 3%.

The upward movement in prices comes as a reaction to Tuesday's steep decline, during which silver had touched 2.26 lakh Rupees per kilogram and gold fell to 1.50 lakh Rupees. Experts believe that the recovery is driven by increased buying at lower price levels, attracting investors after the significant drop. The shifts in the commodity markets indicate a volatile trading environment as external factors, including geopolitical tensions, also impact price movements.

Additionally, incidents such as Iran temporarily closing parts of the Strait of Hormuz have added to market concerns, affecting oil and gold prices significantly. The strategic importance of this waterway for global oil transport cannot be understated and tends to have a spillover effect on gold and silver prices as investors seek safe-haven assets during times of uncertainty.