Mumbai’s bustling commodity markets witnessed a sharp rebound in precious metals on Friday, the final trading day of the week. Gold and silver prices, which had plummeted in the previous session, climbed back up as investors seized the buying opportunity.
In the early hours, April delivery gold on the Multi Commodity Exchange (MCX) jumped over 1 percent to touch a daily high of 1,54,837 rupees per 10 grams. March delivery silver followed suit, soaring more than 2.50 percent to 2,43,699 rupees per kilogram, marking its peak for the day.
By around 11:32 AM, gold for April 2 expiry was trading 0.60 percent higher at 1,53,759 rupees per 10 grams, up 923 rupees. Silver for March 5 expiry gained 1.92 percent, or 4,531 rupees, to 2,40,966 rupees per kilogram.
Sandeep Raichura, Director at PL Capital, noted that gold has stabilized after the late January correction. He forecasted gold could reach 6,000 dollars per ounce by the end of 2026.
Market experts attribute the recovery to easing trade tensions. US President Donald Trump’s approval of a trade deal with India and signals of one with Brazil have alleviated some concerns. Yet, persistent inflation and global economic disparities continue to drive central banks’ gold purchases.
Analysts point to strong support levels at 1,54,000 rupees for gold per 10 grams and around 2,42,000 rupees per kilogram for silver. The recent dip was merely profit-taking, not a sign of underlying weakness.
Internationally, Comex gold traded between 4,850 and 5,100 dollars after peaking at 5,500-5,600 dollars recently. Silver fluctuated from 73 to 84 dollars, down from highs above 121 dollars.
The dollar index rose to 97 from 96.93 in the prior session. Investors now eye upcoming US inflation data for clues on Federal Reserve interest rate decisions.
Silver benefits from tight supply and steady industrial demand, while gold’s safe-haven appeal and central bank buying suggest upward momentum in the coming years.