At 1245 hours IST, gold was up by $227 or nearly 5 per cent at $4,887.05 an ounce. Gold April futures on COMEX gained over 5.5 per cent at $4,913.14 an ounce.
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Bargain hunting put an end to the fall in gold and silver prices, as the precious metals gained handsomely on Tuesday in the global market.
“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 to accumulate precious metals,” said Renisha Chainani, head of research at Augmont.
Silver, again, outshone gold, gaining over 8 per cent, while gold rose nearly 5 per cent by mid-day. In India, the yellow precious metal gained by 10 per cent, but silver dropped marginally in the Mumbai spot market. But on MCX, gold futures were 5.5 per cent and silver contracts by 11 per cent as investors saw a buying opportunity after the precious metals complex was mauled on Friday and Monday.
At 1245 hours IST, gold was up by $227 or nearly 5 per cent at $4,887.05 an ounce. Gold April futures on COMEX gained over 5.5 per cent at $4,913.14 an ounce. In the Mumbai spot market, gold opened at ₹1,50,708 per 10 gm and on MCX, the precious metal’s April futures ruled at ₹1,51,900, a gain of nearly ₹8,000.
Silver at premium in China
Silver surged to $86.3 an ounce, up by over $7. On COMEX, silver March futures increased to $86.06 an ounce. In the Mumbai spot market, silver opened at ₹2,55,372 against ₹2,59,500 last evening. On MCX, silver March futures increased by over ₹27,800 a kg to ₹2,64,100.
On the Shanghai Futures Exchange, silver March futures ruled at 21,750 yuan a kg ($97.39 an ounce). The white precious metal is at a premium in China as it is in demand for a slew of industries, such as electric vehicles, electronics and data centres.
Platinum was up over 5% at $2,219.40 an ounce. Palladium gained nearly 7 per cent at $1,822 an ounce.
Hareesh V, Head of Commodity Research, Geojit Investments Limited, said, “A dramatic unwind hit gold and silver markets over the past two days, erasing a chunk of their record‑breaking January gains. The plunge began after CME Group hiked margin requirements on both metals, forcing leveraged traders to liquidate positions and accelerating a wave of selling.”
Lack of key data
The correction was amplified by extreme overbought conditions after gold and silver touched unprecedented highs just days earlier, with silver having surged more than 60 per cent in a month and gold over 20 per cent. Profit‑taking cascaded into panic selling as liquidity thinned and volatility spiked, he said.
“The violent drop is more like a technical correction than a deterioration in core fundamentals, noting that longer‑term drivers—geopolitical tensions, central‑bank buying and macro uncertainty—remain intact,” said Hareesh.
Chainani said gold and silver 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.
Gold prices may extend the ongoing rebound toward $5,000 (₹155,000), with strong support seen near $4,600 (₹139,000).
Silver is attempting to build a base and is expected to consolidate in the $72–$87 range (~₹225,000–₹270,000). A buy-on-dips and sell-on-rallies strategy is advisable within this range amid elevated volatility, she said.
The precious metals complex has had a dazzling run up to a record high of $5,608 on geopolitical crises, US trade disputes with other nations, and investors switching over to precious metals, fearing slack economic growth. In addition, silver is facing physical deficit for over seven years in a row.
Published on February 3, 2026
