Gold and Silver Prices Rebound on Wednesday
Gold and silver prices experienced a modest recovery on Wednesday, February 11, following a downward trend observed on Tuesday. This upward movement comes amid growing market expectations of a potential interest rate cut by the US Federal Reserve, which typically supports non-yielding assets like precious metals.
Current Market Performance
During Asian trading hours on February 11, spot gold traded marginally higher at $5,065 per ounce, showing resilience after recent declines. Meanwhile, spot silver demonstrated stronger momentum, surging 1.16% to $81.32 per ounce. Despite these gains, both metals remain significantly below their recent peaks.
Gold prices currently stand nearly 11% below their record high of $5,608.35, which was achieved on January 29. Silver prices face an even steeper gap, trading approximately 50% away from their all-time high of $121.67 per ounce.
Factors Influencing Precious Metals
According to a Bloomberg report, consumer spending unexpectedly flatlined in December, highlighting concerns about the rising cost of living. This economic data has set the stage for heightened attention on the January employment report scheduled for release on Wednesday.
Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities, commented: "Participants are awaiting key U.S. retail sales data, followed by unemployment and non-farm payroll numbers later in the week. These releases are likely to inject volatility, as they will shape expectations around the Fed's policy stance and influence near-term price direction in bullion."
Any additional easing in borrowing costs would support gold, which does not offer interest income and generally performs well in a low-rate environment. The precious metal climbed to a record high in late January before experiencing a sharp decline, but has since recovered roughly half of those losses.
Near-Term Outlook for Gold and Silver
According to brokerage firm Geojit Investments Limited, gold prices are expected to remain supported by sustained central bank purchasing and strong ETF inflows, even as geopolitical tensions ease and trade-related uncertainties diminish.
The firm noted in a research report: "Nevertheless, once this period of turbulence and liquidation subsides, the market is likely to refocus on the underlying structural drivers that continue to underpin bullion demand."
Technical Analysis Perspective
On the technical outlook, Ponmudi R, CEO of Enrich Money, observed that the broader uptrend remains intact, with the recent pullback reflecting profit booking and healthy price digestion. Prices continue to trade above key moving averages, suggesting the correction is maturing.
Ponmudi elaborated: "COMEX Gold is trading near the $4,900–$5,100 zone after a sharp correction from recent highs above $5,500–$5,600. Strong buying interest is visible in the $4,500–$4,700 support band, and sustained stability above this zone could set the stage for renewed upside momentum. A breakout above $5,200–$5,300 would open the path toward a retest of record highs."
Silver Market Analysis
Regarding silver prices, Ponmudi further opined that while the broader bullish structure remains intact on higher timeframes, the steep pullback has pushed prices below key moving averages, indicating short-term bearish pressure and an extended corrective phase.
He explained: "COMEX Silver is trading near the $78–$83 zone after a sharp correction from record highs above $121. Strong buying interest is visible in the $65–$70 support band, aligned with prior swing lows and long-term trend support. A sustained hold above this base, followed by a recovery and close above $85–$92, could revive upside momentum toward $95–$105 and potentially retest previous highs. The medium- to long-term outlook remains constructive, supported by steady industrial demand and structural supply constraints, despite elevated volatility."
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Bharat Horizon. We advise investors to check with certified experts before making any investment decisions.
