Mumbai’s commodity markets are buzzing with renewed vigor on Wednesday, just a day after precious metals took a brutal hit. Gold and silver staged a stunning comeback, with prices climbing sharply in early trading on the Multi Commodity Exchange (MCX). After tumbling nearly 10,000 rupees per kilogram yesterday, silver led the charge, roaring back with impressive gains.
In the opening hours, April-delivery gold futures jumped around 1% to touch an intraday high of 1,58,436 rupees per 10 grams. March-delivery silver futures surged even more dramatically, up nearly 3% to hit 2,62,892 rupees per kilogram. By midday around 12:56 PM, gold was holding steady at 1,58,357 rupees, up 1,554 rupees, while silver traded at 2,61,949 rupees, boasting a 3.72% or 9,401-rupee gain.
This recovery comes amid softer-than-expected US consumer spending data for December, fueling bets that the Federal Reserve might accelerate interest rate cuts. A weaker dollar index, dipping from 96.80 to 96.59, further bolstered demand by making gold and silver more affordable for overseas buyers.
Globally, spot gold and silver prices also edged higher. COMEX gold hovered between 4,900 and 5,100 dollars after peaking near 5,600 dollars recently, with analysts attributing the pullback to routine profit-taking. Long-term, however, gold’s outlook remains robust.
Silver benefits from robust industrial demand and supply constraints, though its volatility persists. Experts peg COMEX silver support at 65-70 dollars. In MCX terms, gold finds support at 1,55,500 and 1,54,000 rupees, with resistance at 1,57,700 and 1,59,000. For silver, supports lie at 2,44,000 and 2,48,800 rupees, resistance at 2,60,000.
While these levels mark a rebound, both metals remain well below record highs—gold at 1,83,000 rupees and silver at 4,20,000 rupees hit on January 29. Market watchers now eye upcoming US non-farm payrolls and inflation data for clues on Fed policy. With expectations shifting to at least three rate cuts this year, precious metals could sustain upward momentum, offering a safe haven amid economic uncertainties.