Gold, Silver Rebound Sharply After Steep Crash; China Demand Key

• Gold and silver prices saw a strong rebound on Tuesday after a sudden 13% crash in gold over two days.
• Spot gold rose 2.2% to over $4,760 per ounce, while silver climbed 3.7% to above $82.
• The previous rally was driven by geopolitical tensions, currency debasement fears, and questions about the US Federal Reserve's independence, with aggressive buying from Chinese investors.
• Market focus is now on whether Chinese investors will buy the dip, especially with strong physical gold demand seen in Shenzhen before Lunar New Year.
• Major banks like Deutsche Bank maintain a positive long-term outlook for gold, projecting prices to reach $6,000.

Why It Matters: Gold and silver prices recovered significantly, with future trends heavily dependent on Chinese investor demand.