Gold and silver prices staged a sharp recovery on Tuesday, rebounding nearly 5 per cent and 8 per cent, respectively, as bargain hunters emerged after last week’s historic correction, though analysts warned volatility is likely to persist.
COMEX gold surged above $4,900 before settling around $4,860, while MCX gold rallied above ₹1,51,000, gaining nearly ₹8,000 intraday. Silver climbed to around $79-$80, while MCX silver traded around ₹2,69,000 after hitting a bottom of ₹2,25,805 in the previous session.
“Gold and silver have rebounded nearly 10 per cent from recent lows as markets factor in the absence of key US economic data due to a partial government shutdown and renewed bargain hunting. The sharp correction—around 25 per cent in gold and 45 per cent in silver from recent highs—has attracted strong physical buying from investors who were waiting for meaningful price retracements,” said Renisha Chainani, Head of Research at Augmont.
The Monday session had extended losses from Friday’s brutal selloff. “Spot gold plunged more than 4.5 per cent on Tuesday, closing below $4,700/oz, while silver tumbled around 7 per cent to settle near $79.3. The selloff was driven by a rebound in the US dollar and a shift towards a more hawkish Federal Reserve outlook following the nomination of Kevin Warsh as the next Fed Chair,” said Kaynat Chainwala, AVP – Commodity Research, Kotak Securities.
“Additional pressure came from firmer US Treasury yields after US manufacturing data surprised to the upside. The ISM manufacturing index jumped to 52.6 in January from 47.9, returning to expansion territory after 26 consecutive months of contraction,” Chainwala added.
The Tuesday rebound came despite continued dollar strength following the US-India trade deal announcement. “Gold and silver remained weak early in the session due to margin-call driven liquidation. Positions were unwound aggressively due to margin pressure, although prices recovered from the day’s lows on short-covering and bargain buying at lower levels,” said Rahul Kalantri, VP Commodities, Mehta Equities Ltd.
The US-India trade agreement, which reduced tariffs on Indian goods from 50 per cent to around 18 per cent, had mixed implications for precious metals. “The US–India trade deal has supported the Indian rupee, with USD/INR appreciating towards 90.20, up nearly 1 per cent. While tariff cuts improve trade relations, reduced uncertainty and a stronger rupee may temporarily cap domestic gold and silver prices by easing safe-haven demand and lowering import costs,” Chainani said.
Ross Maxwell, Global Strategy Operations Lead at VT Markets, offered perspective on the trade deal’s impact. “Gold and silver prices will be looking to balance between lower trade tensions and persistent macro uncertainty. A clearer trade outlook can reduce risk aversion, which will limit upside moves in precious metals. However, gold remains well supported by ongoing concerns around inflation, currency stability and geopolitical risks,” Maxwell said.
Despite the rebound, analysts expect continued volatility. “Looking ahead, gold and silver are likely to remain volatile, with markets focused on the upcoming US jobs report for clues on the timing of the Fed’s next rate cut. Chinese markets will also draw attention, as previously elevated Shanghai-COMEX premiums highlighted physical-paper divergence that fuelled silver’s unprecedented swings,” Chainwala said.
“Gold traded strongly positive as CME Gold surged above $4,900, triggering sharp upside momentum in MCX Gold. This week, US Nonfarm Payrolls and Unemployment data will be closely tracked. Technically, Gold has immediate support near ₹1,45,000, while resistance is seen around ₹1,55,000,” said Jateen Trivedi, VP Research Analyst, LKP Securities.
Aamir Makda, Commodity & Currency Analyst at Choice Broking, provided technical levels. “Gold price has rebounded significantly from the bottom of 137,000 by ~12 per cent. Immediate resistance would be at 154,215. Breakout of this level will boost upside momentum towards 160,000–167,000. Silver has started trading over 253,468, with next hurdle at 341,773. We are expecting moderately bullish trend ahead,” Makda said.
Hareesh V, Head of Commodity Research at Geojit Investments Limited, offered a cautiously optimistic view. “Gold and silver are showing early signs of stabilisation after last week’s historic selloff. The drivers for bullion remain intact, suggesting the correction was largely due to short term catalysts rather than a shift in long term fundamentals. Going forward, choppy trading is likely,” Hareesh said.
Chainani provided specific technical triggers. “Gold prices may extend the ongoing rebound towards $5,000 (₹155,000), with strong support seen near $4,600 (₹139,000). Silver is expected to consolidate in the $72–$87 range. A buy-on-dips and sell-on-rallies strategy is advisable within this range amid elevated volatility,” she said.
Kalantri offered support and resistance levels. “Gold has support at $4,655-$4,575 while resistance at $4,860-$4,950. Silver has support at $74.8-$69.75 while resistance is at $88.15-$94.80. In INR gold has support at ₹1,38,650-₹1,35,310 while resistance at ₹1,48,850-₹1,50,950,” he said.
Published on February 3, 2026
