Silver and Gold Prices Soar on Weak Dollar and Global Cues
In a significant rebound, silver and gold prices surged in early trading on Monday, February 9, 2026, fueled by dip buying amid a softer US dollar and supportive international developments. The rally comes after a steep selloff last week, with silver leading the charge in the precious metals complex.
Market Performance Highlights
On the Multi Commodity Exchange (MCX), silver prices jumped 4% to ₹2,59,887 per kilogram, while gold prices climbed 2% to ₹1,58,500 per 10 grams. In the international markets, spot silver advanced 2.5%, building on a sharp 10% gain from the previous session. Spot gold rose as much as 1.7% to breach the $5,000-per-ounce mark before settling slightly lower, with prices up 1.4% at $5,029.09 per ounce by 0037 GMT. US gold futures for April delivery also increased by 1.4% to $5,051.0 per ounce.
Other precious metals joined the uptrend, with spot platinum gaining 1.8% to $2,134.18 per ounce and palladium advancing 1.8% to $1,737.75 per ounce, reflecting a broad-based recovery across the sector.
Key Drivers Behind the Rally
The primary catalyst for the surge was weakness in the US dollar, which fell to its lowest level since February 4. This depreciation made dollar-denominated precious metals more affordable for international buyers, boosting near-term demand sentiment.
Additionally, political developments in Japan provided a tailwind. Prime Minister Sanae Takaichi's landslide election victory reinforced expectations of looser fiscal policies and sustained pressure on the yen, factors that typically support gold and silver as alternative stores of value.
Comments from US Treasury Secretary Scott Bessent also played a role, as he indicated that the Federal Reserve is unlikely to rapidly reduce its balance sheet size, even with potential leadership changes. Market participants are currently pricing in at least two 25-basis-point interest rate cuts in 2026, with the first anticipated around June. Investors are also awaiting a key US labor market report later this week for further insights into the Fed's policy trajectory.
Geopolitical tensions added to the supportive backdrop, with Iran's Foreign Minister Abbas Araqchi emphasizing that recognizing Iran's right to enrich uranium is crucial for progress in nuclear negotiations with the United States. This follows indirect talks between US and Iranian diplomats in Oman, amid an expanded US naval presence near Iran.
Context and Market Outlook
Despite the recent rebound, precious metals remain significantly below their recent peaks. Silver has crashed over 40% from its record high of ₹4,20,000 on January 29, 2026, and is up just 6% year-to-date. Gold, while down about 11% from its all-time high on the same date, remains up around 15% so far in 2026, highlighting the strength of its longer-term uptrend.
Market participants are closely monitoring currency movements and global risk sentiment for further direction. While volatility persists following the recent sharp correction, a weaker dollar and supportive macroeconomic signals could continue to underpin near-term recoveries in precious metal prices. The rally raises questions about whether the white metal's uptrend is sustainable, but current factors suggest potential for continued support in the short term.
