Gold and silver exchange-traded funds (ETFs) staged a strong rebound on Tuesday, rising as much as13 per centafter a sharp three-day selloff that had unsettled investors. The recovery came as bullion prices turned attractive at lower levels, global market cues stabilised and panic-driven selling eased.

The bounce was mirrored inMCX gold and silver futures, which moved higher after recording their steepest weekly decline in months. Market participants said much of the buying was driven by investors who viewed the recent correction as an overshoot, with both metals slipping into technically oversold territory following sustained selling pressure.

According toHareesh V, Head of Commodity Research at Geojit Investments Limited, the rebound signals early stabilisation rather than a full-fledged trend reversal. He noted that the long-term fundamentals for bullion remain intact, and last week’s decline was largely triggered by short-term factors such as margin hikes, a stronger US dollar and repositioning linked to expectations around the next US Federal Reserve chair.

As the US dollar eased and global spot prices steadied, domestic gold and silver ETFs attracted fresh inflows. Silver, which had fallen more than 10 per cent last week, saw renewed interest from traders hunting for value at lower levels.

While analysts expect volatility to persist amid shifting currency trends, inflation signals and global risks, the return of buying interest suggests investors continue to view gold and silver as effective hedges in an uncertain macro environment. A sustained recovery, however, will depend on whether prices hold above key support levels and global cues remain supportive.