Aniket PujariGold, silver rates today: Both precious metals witnessed a sharp rebound on Friday, February 7, buoyed by a softer dollar, robust physical demand, and ongoing geopolitical tensions.
MCX gold April futures surged more than 2% to ₹1,55,374 per 10 grams, while MCX silver March futures climbed nearly 3% to ₹2,50,300 per kg, supported by short covering and fresh hedging activity amid global uncertainty.
Meanwhile, in the international market, spot gold climbed 3.9% to $4,954.92 per ounce, recovering losses from a choppy Asian trading session after plunging 3.9% on Thursday. At the same time, spot silver surged 8.6% to $77.33 an ounce after falling below $65 earlier in the day, though it remained on track for a weekly decline of more than 8.7%, extending the sharp losses seen last week as well.
What drove the rally in both gold and silver prices?
The rebound in bullions prices was primarily driven by a sharp 0.20% drop in the US dollar index, which made dollar-denominated bullion more affordable for international buyers.
In addition, continued expectations of interest rate cuts by the US Federal Reserve supported gold prices. A University of Michigan report showed that median one-year inflation expectations declined to 3.5%, the lowest level since January 2025, boosting optimism about further Fed rate cuts in the months ahead.
On the geopolitical front, discussions between the US and Iran began on an encouraging note, though there was little clarity on the timeline or direction of the next round of talks, which are expected to continue.
“Profit booking, a stronger U.S. dollar, and rising real yields triggered the pullback; however, long-term fundamentals remain supportive, including sustained central bank buying, constrained mine supply, strong industrial demand (particularly for silver), and ongoing geopolitical and currency diversification trends,” said Ponmudi R, CEO of Enrich Money.
Is it right time to invest in gold and silver?
According to Ponmudi, precious metals are attempting to stabilize following last week’s sharp sell-off.
Ponmudi further opined that the medium- to long-term bullish structure remains firmly intact. The recent correction helped unwind excess leverage built during January’s rally.
On the technical outlook, he said MCX Gold is stabilizing after correcting from the ₹1,78,000– ₹1,80,000 zone.
“Strong demand is emerging near ₹1,50,000– ₹1,55,000, while the broader upward channel structure remains intact. A sustained move above ₹1,60,000 could revive bullish momentum toward ₹1,70,000– ₹1,80,000+ over the medium term,” Ponmudi added.
On the silver outlook, Ponmudi further explained that MCX Silver has corrected into the ₹2,30,000– ₹2,35,000 support region — historically associated with strong physical and industrial buying.
“Current price action suggests absorption rather than aggressive distribution. A decisive breakout above ₹2,60,000 could act as a trigger for fresh upside toward ₹2,75,000– ₹2,90,000+.”
Meanwhile, Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, said that major U.S. data releases this week have kept sentiment slightly cautious, prices continue to find strong support near $4,800 on CME and around ₹1,49,000 on MCX.
“Immediate resistance is now seen near $4,925 and ₹1,55,000, with volatility likely to persist around key data triggers,” Trivedi said.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
