Editor’s Note
This article reports on a notable recovery in precious metals prices during early trading on February 13, following a recent correction. The data reflects a significant uptick for both gold and silver futures contracts on India’s Multi Commodity Exchange (MCX).
The gold rate on the Multi Commodity Exchange (MCX) jumped more than 1% in early trade on February 13.
Key Numbers From MCX:
MCX Gold April Contract: Up ₹2,000
Price: ₹1,54,837 per 10 grams
Gain: 1.30%
Silver followed the same path.
MCX Silver March Futures: Up ₹5,600
Price: ₹2,42,081 per kg
Gain: 2.4%
This rebound comes after a sharp correction in the previous session. The selling pressure had pushed precious metals lower, but Friday’s trade signaled bargain hunting at lower levels.
The recovery wasn’t limited to MCX. International markets also saw buying interest.
International Price Snapshot:
US Gold Futures (April Delivery): Up 0.7% to $4,985.40 per ounce
Spot Silver: Up 2.1% to $76.76 per ounce
This came after silver had dropped 11% earlier in the week. That kind of fall often invites short covering and fresh buying.
Gold too had fallen more than 3% in the previous session before rebounding toward $4,960 per troy ounce.
To understand today’s rise in the gold rate, we need to look at what caused the earlier fall.
The broader financial markets had witnessed a selloff. When markets turn volatile, investors often liquidate holdings across asset classes — including precious metals — to raise cash.
That selling pressure dragged gold lower.
The gold rate is closely linked to US macroeconomic data and expectations around the Federal Reserve’s interest rate path.
Here’s what the latest data showed:
US Jobs Data:
Nonfarm Payrolls (January): +1,30,000 jobs
December (Revised): +48,000 jobs
Unemployment Rate: 4.3%
In addition:
Initial Jobless Claims: 2,27,000 (week ended February 7)
Stronger-than-expected employment numbers have reduced the urgency for an early US rate cut. Markets are now adjusting expectations around the timing of policy easing.
And this directly impacts the gold rate.
Earlier, markets were expecting a rate cut sooner. But after the strong jobs report, the timeline shifted.
Now, rate cut expectations are being pushed further out.
This change temporarily weighed on global gold prices earlier in the week. However, once the correction happened, the gold rate attracted fresh buying support.
Silver often moves with gold, but with higher volatility.
After an 11% drop earlier this week, global silver prices rebounded 2.1%. Domestic silver futures on MCX jumped 2.4% in early trade.
The sharp fall earlier had triggered heavy selling. Friday’s move reflects recovery from oversold zones and short covering in international markets.
The rebound in silver added strength to the broader precious metals space and supported the positive sentiment around the gold rate.
The precious metals market is currently moving in phases:
Sharp volatility
Sudden corrections
Quick recoveries
This pattern suggests that traders are reacting quickly to macro data and rate expectations.
The gold rate is not collapsing despite strong US data. Instead, it is showing resilience after corrections.
Investors are now watching upcoming inflation data from the US.
Inflation numbers will offer further clarity on:
Federal Reserve interest rate trajectory
Timing of potential policy shifts
Global dollar movement
Each of these factors influences the gold rate directly.
Until then, volatility is likely to remain part of the trading landscape.
Here’s the clear picture:
The gold rate jumped over 1% on MCX after a sharp previous-session decline.
MCX gold April contract rose to ₹1,54,837 per 10 grams.
Silver surged 2.4% to ₹2,42,081 per kg.
International gold futures gained 0.7% to $4,985.40 per ounce.
Strong US jobs data shifted rate cut expectations.
Volatility triggered liquidation first, then value buying.
The overall tone?
Short-term volatility, but solid buying interest on declines.
