At 1245 IST, gold rose $227 or almost 5 percent to $4,887.05 per ounce. Gold April futures on COMEX rose more than 5.5 percent to $4,913.14 an ounce. | Photo credit: matejmo
“The sharp correction – around 25 percent in gold and 45 percent in silver from recent highs – has attracted strong physical buying from investors who were waiting for meaningful price changes to accumulate precious metals,” said Renisha Chainani, head of research at Augmont.
Silver once again outperformed gold, gaining more than 8 percent, while gold rose almost 5 percent mid-day. In India, the yellow precious metal rose 10 percent, but silver fell marginally on the spot market in Mumbai. But on MCX, gold futures were up 5.5 percent and silver contracts were up 11 percent as investors saw a buying opportunity after the precious metals complex was torn apart Friday and Monday.
At 1245 IST, gold rose $227 or almost 5 percent to $4,887.05 per ounce. Gold April futures on COMEX rose more than 5.5 percent to $4,913.14 an ounce. At the Mumbai spot market, gold opened at ₹1,50,708 per 10 gram and on MCX, futures of the precious metal were trading at ₹1,51,900 in April, a gain of nearly ₹8,000.
Silver as premium in China
Silver rose to $86.3 per ounce, an increase of more than $7. On COMEX, March silver futures rose to $86.06 an ounce. At the spot market in Mumbai, silver opened at ₹2,55,372, up from ₹2,59,500 last night. On MCX, silver mars futures rose by over ₹ 27,800 per kg to ₹ 2,64,100.
On the Shanghai Futures Exchange, silver March futures were trading at 21,750 yuan per kg ($97.39 per ounce). The white precious metal is expensive in China because it is in high demand across a range of industries, such as electric vehicles, electronics and data centers.
Platinum rose more than 5% to $2,219.40 an ounce. Palladium rose almost 7 percent to $1,822 an ounce.
Hareesh V, Head of Commodity Research, Geojit Investments Limited, said: “A dramatic pullback has hit the gold and silver markets over the past two days, wiping out some of their record January gains. The plunge started after CME Group raised margin requirements for both metals, forcing leveraged traders to liquidate their positions and accelerate a sell-off.”
Lack of key data
The correction was amplified by extreme overbought conditions after gold and silver reached unprecedented highs just days earlier, with silver rising more than 60 percent and gold rising more than 20 percent in a month. Profit-taking turned into panic selling as liquidity decreased and volatility increased, he said.
“The violent decline looks more like a technical correction than a deterioration in fundamentals, noting that longer-term factors – geopolitical tensions, central bank buying and macro uncertainty – remain intact,” Hareesh said.
Chainani said gold and silver rebounded nearly 10 percent from recent lows as markets factor in the absence of key U.S. economic data due to a partial government shutdown and renewed bargain hunting.
Gold prices could extend the ongoing recovery to $5,000 (₹155,000), with strong support around $4,600 (₹139,000).
Silver is trying to build a base and is expected to consolidate between $72 and $87 (~₹225,000 – ₹270,000). Within this range, a strategy of buy-on dips and sell-on rallies is advisable amid the high volatility, she said.
The precious metals complex has had a dizzying run to a record high of $5,608 due to geopolitical crises, US trade disputes with other countries and investors switching to precious metals amid fears of weak economic growth. In addition, silver has suffered from physical shortages for more than seven years in a row.
Published on February 3, 2026
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