Editor’s Note
This article highlights the volatile nature of the precious metals market, detailing a significant rebound in gold and silver prices on February 13 following a prior sharp decline. The figures quoted are sourced from the Multi Commodity Exchange (MCX).
A strong stir has been witnessed once again in the precious metals market. After a sharp fall in the previous session, a massive surge was recorded in gold and silver prices on Friday, February 13. On the Multi Commodity Exchange (MCX), gold for April delivery rose by nearly ₹2,000, or 1.30%, to reach ₹1,54,837 per 10 grams. Meanwhile, an even bigger rally was seen in March futures silver. Silver jumped by more than ₹6,600, or 2.4%, to reach ₹2,43,081 per kilogram. After heavy selling in the previous session, investors considered the decline as a buying opportunity, leading to a recovery in the market.
Strength was also seen in gold and silver prices in the international market. In the US, gold futures for April delivery rose 0.7% to $4,985.40 per ounce. Spot silver also climbed over 2% to $76.76 per ounce. Prior to this, silver had seen a significant drop of nearly 11%, after which a rally was seen due to short covering. According to experts, during the broad market decline in the previous session, investors sold precious metals to raise cash, but now that conditions have stabilized, buying has returned.
Strong employment data from the US has slightly weakened expectations of interest rate cuts by the Federal Reserve. In January, 130,000 new jobs were added to non-farm payrolls, while the unemployment rate fell to 4.3%. Due to the strong data, the market is now expecting a potential rate cut in July. However, investors are now keeping an eye on inflation figures, which will determine the future direction.
Analysts believe that due to a mild recovery in global markets, MCX gold April futures could hold around ₹1,54,000. Meanwhile, in silver, due to short covering, strength up to ₹2,42,000 per kilogram is being anticipated.