Precious metals—gold and silver—have returned to their bull run in Tuesday’s session, February 03, after remaining under pressure for two straight sessions, which marked the worst period for both metals in over a decade.
After Friday’s plunge, its worst day in 46 years, and another 1.9% retreat on Monday that left gold down 13% over two sessions, the April futures contracts on Comex rebounded 7%, or $325, to the day’s high of $4,975 per troy ounce, and are also on track for their biggest daily gain since November 2008.
Comex silver rebounds 15%
Silver prices, too, have gathered pace following a two-day sell-off, with March silver contracts on Comex gaining nearly 15% to the day’s high of $88.4 per troy ounce. With today’s gain, prices have recovered nearly 50% of the cumulative losses over the last two trading sessions.
During Friday’s session, Comex gold crashed 11.4%, its worst intraday performance since 1980, while the 31.4% crash in silver prices marked the biggest single-day drop on record. The sharp crash appears to have encouraged investors to accumulate gold on dips, helping it stage a strong comeback.
MCX gold jumps over ₹11,000 per 10g, silver reclaims ₹2.75 lakh
In the domestic market, the February futures contract of gold on MCX crossed the ₹1.5 lakh mark, as prices further accelerated by ₹11,243 per 10 grams to reach the day’s high of ₹1,53,460 per 10 grams.
Meanwhile, the March silver futures contract opened the session higher at ₹2,45,711 per kilogram and kept the pace to hit the day’s high of ₹2,75,267—a ₹₹2,36,261″>39,000 jump compared with Monday’s close of ₹2,36,261.
The recent sell-off across precious metals was triggered by US President Donald Trump’s nomination of Kevin Warsh to lead the Federal Reserve, sending the US dollar index higher and making greenback-priced commodities more expensive for other currency holders.
While investors expect Warsh to favour rate cuts, they anticipate he will tighten the Fed’s balance sheet, a move typically supportive of the dollar.
Meanwhile, CME Group also raised margin requirements on precious metal futures, which, along with a massive January rally, has led investors to lock in some profits and further weighed on prices.
Will the bounce-back rally in both gold and silver continue?
Jateen Trivedi, VP, Research Analyst (Commodity and Currency) at LKP Securities, said gold traded strongly positive as CME gold surged above $4,900 in the first session, triggering sharp upside momentum in MCX gold, which rallied above ₹1,51,000, gaining nearly ₹8,000 intraday. The breakout reflects renewed safe-haven buying and short covering at lower levels.
Technically, gold has immediate support near ₹1,45,000, while resistance is seen around ₹1,55,000.
Ponmudi R, CEO of Enrich Money, noted that Comex gold is witnessing strong demand in the $4,500–$4,400 support band. Sustained consolidation above this base could set up the next leg higher, with a decisive move above $5,000–$5,100 reopening upside toward prior highs.
On MCX gold, he said a sustained move above ₹1,50,000 could revive upside momentum toward ₹1,65,000– ₹1,70,000, keeping the medium-term outlook positive despite near-term swings.
For MCX silver, he said the ₹2,20,000– ₹2,35,000 zone is a critical base, while the ₹2,60,000– ₹2,70,000 zone is immediate resistance. Sustained momentum could extend the move toward ₹3,25,000, with dips continuing to favour accumulation for positional traders.
For Comex silver, Ponmudi noted that support lies at $71–$75, while a sustained breakout above $88–$90 could trigger the next impulsive move toward $100–$105. Structural supply deficits and steady industrial demand continue to support the bullish bias.
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.
