Safe-haven assets made a strong comeback on 13 February in Friday’s session, as softer US inflation data reinforced expectations of Federal Reserve rate cuts, while a weaker US dollar is also supporting precious metals recovery.
After falling $150 in the previous session, the April futures contract on Comex rebounded $81 per troy ounce to reach the day’s high of $5,029.
If prices hold around these levels toward the close, it would help the yellow metal extend its weekly winning run to a second straight week.
According to Reuters, US consumer prices, which measure the cost of goods and services in the economy, increased less than expected in January. Prices rose 0.2% during the month, below expectations of 0.3%, reflecting a 2.4% annual increase.
The US central bank tracks the Personal Consumption Expenditures Price Index for its 2% inflation target, and both measures remain well above that level.
Recent data showed that job growth accelerated in January, while the unemployment rate in the US fell to 4.3% from 4.4% in December.
The Fed last month left its benchmark overnight interest rate in the 3.50%–3.75% range.
Markets are pricing in the Federal Reserve to hold rates steady in March before delivering two 25-basis-point cuts later this year.
Comex silver prices rebound $3.6
Silver prices, which also fell sharply in the previous session, staged a strong comeback, with the March silver futures contract on Comex rising $3.6 to the day’s high of $79.26 per troy ounce.
The white metal has gained 2.22% so far this week and is on track to end a two-week decline.
Ponmudi R, CEO of Enrich Money, said that Comex Silver is trading near the $73–$84 zone after a sharp correction from record highs above $121. He said strong buying interest is visible in the $65–$70 support band, aligned with prior swing lows and long-term trend support.
He noted a sustained hold above this base, followed by a recovery and close above $85–$92, could revive upside momentum toward $95–$105 and potentially retest previous highs.
The medium- to long-term outlook remains constructive, supported by steady industrial demand and structural supply constraints, despite elevated volatility.
On Comex Gold, Ponmudi said it is trading near the $4,850–$5,100 zone after a sharp correction from recent highs above $5,500–$5,600. The broader uptrend remains intact, with the recent pullback reflecting profit booking and healthy price digestion.
He noted that prices are currently consolidating in the short term near current levels, continuing to trade above key moving averages, suggesting the correction is maturing.
“Strong buying interest is visible in the $4,500–$4,700 support band, and sustained stability above this zone could set the stage for renewed upside momentum. A breakout above $5,200–$5,300 would open the path toward a retest of record highs,” Ponmudi further added.
MCX gold soars over ₹2,500; silver rebounds ₹12,300
In the domestic market, gold April delivery futures jumped ₹2,510 per 10 grams to the day’s high of ₹1,55,346.
The yellow metal witnessed sharp volatility this week, swinging between ₹1,60,250 and ₹1,49,938, as investors struggled to gauge direction amid mixed global cues.
Following a sharp ₹26,000 crash in the previous session, the March silver contract also regained strength, ₹12,351 and recovering nearly 50% of the previous day’s losses”>rallying ₹12,351 and recovering nearly 50% of the previous day’s losses to reach the day’s high of ₹2,48,786 per kilogram. For the week, silver is down 1.28%.
Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
