Silver prices surged sharply at the start of trade on Wednesday, hitting a fresh record high and stealing the spotlight in the bullion market. On the MCX, silver March futures opened over 2% higher, rising Rs 6,462 to trade at Rs 2,81,649 per kilogram, as bullish momentum continued amid global cues supporting precious metals.
Gold prices also opened in the green, though gains were relatively modest compared to silver. Gold February futures were trading at Rs 1,42,760 per 10 grams, up Rs 519, or 0.36%, in early trade.
While gold hovered near record levels, it was silver that once again captured market attention by scaling a new lifetime high at the opening bell.
Silver nearly touched the $90 mark and gold hovered close to its record highs today, buoyed by softer-than-expected US inflation data that reinforced expectations of an interest rate cut by the US Federal Reserve. Spot gold rose 0.6% to $4,615.85 per ounce as of 0211 GMT, after having hit a record high of $4,634.33 on Tuesday. US gold futures for February delivery climbed 0.5% to $4,624.
In the domestic market, gold and silver ended Tuesday’s session on a positive note. Gold February futures settled at Rs 1,42,241 per 10 grams, gaining 0.15%, while silver March futures jumped 2.31% to close at Rs 2,75,187 per kilogram. Internationally, the metals settled on a mixed note.
The sharp movement followed the release of US core CPI data, which rose 0.2%, slightly below the expected 0.3%, while holding steady at 2.6% annually. This reading boosted the case for easing monetary policy, offering support to both gold and silver. US President Donald Trump welcomed the inflation numbers and once again urged Fed Chair Jerome Powell to enact a “meaningful” rate cut.
Meanwhile, the Trump administration’s reported investigation into Powell drew a strong reaction, with top Wall Street bank CEOs and former Fed chiefs backing the central bank head. Their support came amid growing political tension and bipartisan criticism over the move.
Geopolitical tensions and civil unrest in Iran have further underpinned the safe-haven appeal of precious metals. According to Manoj Kumar Jain of Prithvifinmart Commodity Research, the US Supreme Court’s upcoming decision on Trump-era tariffs could also influence market direction. Jain noted that gold is likely to hold support at $4,380 per troy ounce and silver at $74 on a closing basis, despite the heightened volatility seen across both metals.
The US Dollar Index was last seen hovering around the 99.16 mark, up 0.02%. Jain added that gold and silver prices are expected to remain volatile through the session amid fluctuations in the dollar index and the rupee, as well as updates on the Russia-Ukraine peace deal. He expects gold to trade between $3,434 and $3,510 per troy ounce, while silver is likely to move in the range of $38.50 to $39.80.
How to trade gold?
Manoj Kumar Jain suggested the following ranges for gold and silver on MCX:
Gold has support at Rs 1,41,400 to Rs 1,40,700 and resistance at Rs 1,43,000 to Rs 1,44,200.
Silver has support at Rs 2,72,000 to Rs 2,68,000 and resistance at Rs 2,80,000 to Rs 2,85,500.
Jain suggests buying gold on dips around Rs 1,41,700 to Rs 1,41,100 with a stop loss below Rs 1,40,000 for targets of Rs 1,43,000 to Rs 1,44,200. He also suggests buying silver around the Rs 2,72,000 to Rs 2,66,000 range with a stop loss below Rs 2,61,000 for targets of Rs 2,80,000 to Rs 2,85,000.
Gold rates in physical markets
Standard gold (22 carat) prices in Delhi stand at Rs 1,06,184 per 8 grams, while pure gold (24 carat) prices stand at Rs 1,14,384 per 8 grams.
Standard gold (22 carat) prices in Mumbai stand at Rs 1,06,072 per 8 grams, while pure gold (24 carat) prices stand at Rs 1,14,248 per 8 grams.
Gold price today in Chennai
Standard gold (22 carat) prices in Chennai stand at Rs 1,06,016 per 8 grams, while pure gold (24 carat) prices stand at Rs 1,14,192 per 8 grams.
Gold price today in Hyderabad
Standard gold (22 carat) prices in Hyderabad stand at Rs 1,06,320 per 8 grams, while pure gold (24 carat) prices stand at Rs 1,14,552 per 8 grams.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times.)
