Gold and silver prices have extended gains on MCX on Wednesday, continuing the strong momentum from Tuesday. Gold April futures on MCX are up 3.8%, whereas silver March futures have gained over 5% in trade today, as the precious metals continue to claw back the massive drawdowns they had witnessed over the past weekend.
Gold April futures on MCX are trading near the Rs 1.6 lakh/per 10 gram levels, while silver March futures have gained over Rs 13,000 to trade near Rs 2.81 lakh.
This comes after both gold and silver had fallen significantly earlier in the month, following Donald Trump’s announcement of Kevin Warsh becoming the successor of Jerome Powell as the US Federal Reserve chair. Warsh is known to be a conservative, who is likely to cut interest rates and strengthen the dollar, which in turn, could put downward pressure on precious metals.
Why Are Gold & Silver Prices Rising Again?
The renewed rally in gold and silver prices can be linked to various factors, including renewed geopolitical uncertainty, especially after Donald Trump’s latest threats against Iran.
This has once again bolstered demand for safe haven asset as investors look to move away from risk assets. Gold and silver, therefore, have yielded a geopolitical risk premium.
Moreover, despite the recent drawdowns, it appears the fundamentals are still intact for precious metals, as highlighted by Sachin Jain of World Gold Council. “Investment demand for gold has risen significantly in Q4, and fundamental belief in gold is still intact,” he told NDTV Profit.
Jain added that gold will remain the ‘new gold’, highlighting that the demand scenario for both investment and jewellery demand is still intact. While jewellery demand volumes have gone down, the value remains a big caveat, he noted.
Meanwhile, Aamir Makda, Commodity & Currency Analyst, Choice Broking, is seeing a moderately bullish trend on both gold and silver.
Silver price has started trading over 50% of Fib. Retracement level, which is at 253,468, having pullback towards 38% of Fib. Retracement level placed at 292,928. Breakout of this level will continue the upward move in Silver ahead, and the next hurdle would be at 341,773. We are expecting a moderately bullish trend in Gold and Silver ahead this week,” he said.
ALSO READ: Gold, Silver Price Today, Feb 4 — Check Prices In Mumbai, Delhi, Chennai, And Other Cities
Comprehensive Budget 2026 coverage,
LIVE TV analysis,
Stock Market and
Industry reactions,
Income Tax changes and
Latest News on NDTV Profit.
