Gold and silver traded higher on Wednesday, 4 February, following strong gains in the previous session, as the recent dip in safe-haven assets encouraged investors to accumulate both metals, reviving their upward momentum.
After a 6% rally, the biggest daily gain since 2008, April futures contracts on Comex jumped another $179, or 3.62%, to the day’s high of $5,113. With today’s rally, prices have gained a cumulative 10%.
Silver recovers 20% in just 2 trading sessions
Silver prices extended gains from Tuesday’s 8% rally, with March silver contracts on Comex climbing nearly 10.5%, or $8.70, to reach a day’s high of $92 per troy ounce. With this surge, silver has recovered 20% over the past two trading sessions.
While both metals are attracting strong investor interest from recent low levels, rising geopolitical tensions have also supported the rally.
US forces reportedly downed an Iranian drone near an aircraft carrier in the Arabian Sea, although President Donald Trump said diplomacy remains active, with the White House confirming that US-Iran talks are still scheduled for Friday, according to media reports.
On the economic front, ADP data came in below expectations, boosting the appeal of precious metals. On Wednesday, ADP reported that 22,000 jobs were added last month, falling short of the consensus forecast of 46,000.
Precious metals had experienced steep price declines following Friday’s announcement that Kevin Warsh would become the next head of the Federal Reserve. Widely considered the most hawkish of the potential picks, Warsh’s nomination had drained gold and silver of some of their safe-haven appeal.
MCX gold jumps over ₹6,950 per 10g, silver marches toward ₹3 lakh
In the domestic market, the February futures contract of gold on₹1.6 lakh mark”> MCX crossed the ₹1.6 lakh mark, extending gains for the third straight session, surging another ₹6,950 per 10 grams to the day’s high of ₹1,60,755.
Meanwhile, the March silver futures contract opened higher at ₹2,78,015 per kilogram and continued its upward pace to hit the day’s high of ₹2,91,300 — a ₹₹2,68,01″>23,285 jump compared with Tuesday’s close of ₹2,68,015.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
