Gold exceeds $4,944 and silver jumps 11% in a violent price rebound

Gold and silver prices rose by more than 5% today, Tuesday, after a sharp wave of selling, against the backdrop of Kevin Warsh’s nomination to head the Federal Reserve Board and the CME Group’s increase in margin requirements.

Gold rose in spot transactions by 6% to $4,944.58 per ounce, after hitting a record level of $5,594.82 last Thursday, according to Reuters.

Gold jumped 13% and silver 19% in January.

Kyle Rodda of Capital.com said that the dollar’s movements and the Warsh nomination were the spark for the metals’ decline.

Silver rose 11.7% to $85.93, while platinum rose 0.6% and palladium fell 0.5%.