Silver, gold rates today: Why prices are rising after recent crash
On the Multi Commodity Exchange, silver prices jumped sharply, while gold also posted strong gains in early trade. MCX silver was trading around Rs 2,53,792 per kg, up Rs 17,531 or 7.42% as of 10 am. MCX gold was near Rs 1,49,101 per 10 grams, higher by Rs 5,110 or 3.55%.
Gold and silver prices in India moved higher on Tuesday, even as global risk sentiment improved after India signed major trade deals with the United States and the European Union.
Normally, such developments reduce demand for safe-haven assets like gold and silver. However, prices rose sharply today, driven by market-specific factors, volatility in global commodities, and positioning in futures markets.
LATEST GOLD AND SILVER PRICES
On the Multi Commodity Exchange, silver prices jumped sharply, while gold also posted strong gains in early trade. MCX silver was trading around Rs 2,53,792 per kg, up Rs 17,531 or 7.42% as of 10 am. MCX gold was quoted near Rs 1,49,101 per 10 grams, higher by Rs 5,110 or 3.55%.
In the physical market, gold was trading close to Rs 1,49,250 per 10 grams, while silver was priced around Rs 2,54,830 per kg.
CITY-WISE GOLD AND SILVER PRICES
Gold and silver prices remained largely uniform across major Indian cities.
In Delhi, Mumbai, Chennai and Kolkata, gold was trading around Rs 1,49,250 per 10 grams. Silver prices in these cities were close to Rs 2,54,830 per kg.
Retail prices may vary slightly depending on local taxes, making charges and jeweller margins.
WHY PRICES ROSE DESPITE IMPROVED RISK SENTIMENT
The rise in gold and silver prices today is unusual, as improved trade stability usually reduces safe-haven buying. With India finalising trade deals with both the US and the EU, geopolitical and trade uncertainty has eased, which normally puts pressure on precious metals.
However, recent sharp corrections, technical factors and volatility in global markets have driven renewed interest in gold and silver.
Hareesh V, Head of Commodity Research at Geojit Investments Limited, said the precious metals market has gone through extreme swings over the past few days.
“A dramatic unwind hit gold and silver markets over the past two days, erasing a chunk of their record-breaking January gains,” he said.
He explained that the sell-off was triggered by changes in trading conditions and expectations around US monetary policy.
“The plunge began after CME Group hiked margin requirements on both metals forcing leveraged traders to liquidate positions and accelerating a wave of selling,” Hareesh said.
He added that the pressure increased after reports around a possible change at the US Federal Reserve.
“The selloff intensified as markets digested reports that U.S. President Donald Trump is set to nominate Kevin Warsh, viewed as a hawkish, dollar-supportive choice, as the next Federal Reserve Chair,” he said.
According to him, this revived expectations of tighter monetary policy and pushed the US dollar higher, which is usually negative for gold and silver prices.
TECHNICAL CORRECTION, NOT FUNDAMENTAL WEAKNESS
Hareesh said the sharp fall seen earlier was more technical in nature rather than a sign of weakening fundamentals.
“The correction was amplified by extreme overbought conditions after gold and silver touched unprecedented highs just days earlier, with silver having surged more than 60% in a month and gold over 20%,” he said.
He added that profit-taking quickly turned into panic selling as liquidity thinned and volatility rose.
“The violent drop was more like a technical correction than a deterioration in core fundamentals. Longer-term drivers such as geopolitical tensions, central bank buying and macro uncertainty remain intact,” he said.
MCX GOLD OUTLOOK
Ponmudi R, CEO of Enrich Money, said MCX gold futures remain volatile but structurally strong.
“MCX Gold futures are trading within the Rs 1,38,000 to Rs 1,48,000 zone after posting record highs near Rs 1,80,779,” he said.
He added that while volatility remains high after the recent sharp rise and profit-taking, prices are still holding above key support levels.
“The rising channel structure remains intact, with pullbacks being absorbed by buyers,” Ponmudi said.
He noted that the Rs 1,43,000 to Rs 1,45,000 range, which earlier acted as support, is now a key resistance zone.
“A sustained move above Rs 1,50,000 could revive upside momentum toward Rs 1,65,000 to Rs 1,70,000, keeping the medium-term outlook positive despite near-term swings,” he said.
MCX SILVER OUTLOOK
Ponmudi said silver has seen sharper moves than gold but continues to remain in a strong long-term trend.
“MCX Silver futures have corrected sharply and are trading near key structural levels between Rs 2,20,000 and Rs 2,60,000, after surging above Rs 4,00,000 and printing record highs near Rs 4,20,048,” he said.
He explained that the sharp rally pushed momentum into extreme overbought levels, leading to strong intraday pullbacks.
“Despite this, the broader trend remains decisively bullish, with the steep rising channel and major EMAs providing strong support,” he said.
According to him, the Rs 2,20,000 to Rs 2,35,000 zone remains a crucial base, while Rs 2,60,000 to Rs 2,70,000 acts as immediate resistance.
“Sustained momentum could extend the move toward Rs 3,25,000. Dips continue to favour accumulation for positional traders,” Ponmudi said.
While improved trade stability after the India-US and India-EU deals has reduced long-term safe-haven demand, short-term price action in gold and silver remains driven by technical factors, volatility and positioning in global markets. Investors are likely to keep a close watch on currency movement, US policy signals and global risk trends in the days ahead.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)