In India, the yellow precious metal gained 6 per cent in the futures market and silver contracts were up by 15 per cent
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Gold and silver recovered their losses over the past couple of sessions on Tuesday as bargain hunting emerged in global and domestic markets. Silver, again, outshone gold, gaining over 11 per cent, while gold rose 5.5 per cent.
In China, the white precious metal topped $100/oz again. The platinum group of metals, too, recovered from the huge fall witnessed on Friday and Monday, rising by 6 per cent.
“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.
Technical correction
“The violent drop (Friday and Monday) 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 V, Head of Commodity Research, Geojit Investments Limited.
In India, the yellow precious metal gained 6 per cent in the futures market and silver contracts were up by 15 per cent as investors saw a buying opportunity after the precious metals complex was mauled on Friday and Monday.
Prithviraj Kothari, Managing Director at RiddiSiddhi Bullions Ltd, and President of India Bullion and Jewellers Association Ltd, said gold is likely to remain range-bound with a positive bias, while silver may see higher volatility but benefit from strong industrial demand, keeping medium- to long-term trends intact.
At 2015 hours IST, gold was up by over $260 or nearly 5.6 per cent at $4,921.75 an ounce. Gold April futures on COMEX gained over 6 per cent at $4,948.76 an ounce. In the Mumbai spot market, gold ended at ₹1,51529 per 10 gm after opening at₹1,50,708. On MCX, the precious metal’s April futures ruled at ₹1,52.00, a gain of nearly ₹8,500.
Silver surged to $88.49 an ounce, up by over $9. On COMEX, silver March futures increased to $88.39 an ounce. In the Mumbai spot market, silver ended at ₹2,63,935 a kg after opening at ₹2,55,372. On MCX, silver March futures increased by over ₹38,700 a kg to ₹2,75,00.
Chinese premium for silver
On the Shanghai Futures Exchange, silver March futures ruled at 23,013 yuan a kg ($103.04 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 6 per cent at $2,239.10 an ounce. Palladium gained nearly 6 per cent at $1,813.5 an ounce.
Hareesh 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.”
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.
Dazzling run
Chainani, head of research at Augmont, said gold and silver rebounded as markets factored 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), she said
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, Chainani 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 has been facing a physical deficit for over seven years in a row.
Published on February 3, 2026
