Gold and silver prices continued their remarkable ascent, scaling lifetime highs on Wednesday as investors flocked to safe-haven assets amid persistent geopolitical tensions. The precious metals maintained their upward trajectory on the Multi-Commodity Exchange (MCX), with silver inching closer to the significant Rs 4 lakh mark while gold registered a substantial 3% jump.
Domestic Markets Witness Unprecedented Rally
The momentum in precious metals comes just ahead of the highly anticipated US Federal Reserve policy announcement, which global investors are monitoring closely for directional cues. Gold futures expiring on February 5, 2026, climbed sharply during early trading hours, rising by Rs 4,800, or 3%, to reach Rs 1,62,429 per 10 grams.
Silver futures for March 5, 2026, delivery posted even more impressive gains, jumping Rs 21,400, or 6%, to settle at Rs 3,77,655 per kilogram. These figures represent fresh lifetime highs for both contracts on the MCX platform, underscoring the strength of the current rally.
Global Markets Echo Domestic Strength
International markets mirrored the strength observed in domestic trading. Global gold prices crossed the significant $5,200-per-ounce threshold on Wednesday, touching an all-time high as the US dollar weakened to its lowest level in nearly four years amid ongoing geopolitical concerns.
The rally unfolded ahead of the US Federal Reserve's monetary policy decision scheduled for later in the day. Spot silver demonstrated resilience, rising 0.6% to $113.63 per ounce, following its record high of $117.69 achieved on Monday. Remarkably, silver has already gained nearly 60% since the beginning of this year, highlighting its exceptional performance.
Market Participants Await Federal Reserve Guidance
Market participants are now keenly awaiting signals from the Federal Reserve, with any indication of a pause or easing in interest rates expected to significantly influence broader market sentiment. Lower interest rates typically weigh on bond yields, making non-yielding assets such as gold and silver more attractive to investors seeking alternative stores of value.
Manoj Kumar Jain of Prithvi Finmart told ET that strong safe-haven buying, driven by heightened global uncertainty, continues to support precious metals. He noted that the dollar index has experienced a sharp decline, slipping to nearly a four-year low. A rebound in the Japanese yen and concerns over potential dumping of US Treasuries by European countries amid the Greenland issue are adding further pressure on the dollar.
Volatility Expected Despite Supportive Environment
While the overall environment remains supportive for gold and silver, price action is expected to remain highly volatile in the coming sessions. Despite this volatility, silver is anticipated to maintain a crucial support level at $98 per troy ounce, while gold is likely to sustain support near $4,980 per troy ounce on a closing basis during the week.
In the near term, both metals are expected to witness sharp fluctuations, tracking movements in the dollar index, the outcome of the Federal Reserve policy meeting, and ongoing geopolitical developments. According to Manoj, gold has support in the $5,084–$5,055 range and faces resistance between $5,174 and $5,220 per troy ounce. Silver finds support at $102.40–$98 and encounters resistance in the $112–$118 range.
Technical Levels and Trading Strategy
On the MCX platform, gold is expected to find support at Rs 1,56,600–Rs 1,55,000, while resistance is placed at Rs 1,59,800–Rs 1,62,000. Silver demonstrates support at Rs 3,50,000–Rs 3,44,000 and resistance between Rs 3,65,000 and Rs 3,78,000.
The recommended trading strategy involves buying gold on price dips as long as it maintains Rs 1,56,000 on a closing basis, with an upside target of Rs 1,65,000. Silver can also be accumulated during price falls while sustaining Rs 3,44,000 on a closing basis, targeting Rs 3,70,000–Rs 3,84,000.
Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India.
