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Gold, Silver Surge 1-2% as Investors Buy Dips; Analysts See Bull Run

Gold and silver prices rebounded sharply on Friday, with MCX futures gaining over 1% and 2.5% respectively as investors engaged in value buying after a recent decline. Analysts attribute the sustained bullish trend to structural supply deficits, steady industrial demand for silver, and persistent safe-haven and central bank buying for gold. The broader uptrend is considered intact, with the pullback viewed as healthy profit booking. Market participants are now keenly awaiting US inflation data for further cues on the Federal Reserve's interest rate trajectory.

Key Points: Gold & Silver Prices Rebound on Value Buying, Bullish Outlook

  • Gold futures gained 1.08%
  • Silver futures jumped 2.59%
  • Analysts cite structural deficits & safe-haven demand
  • Broader uptrend remains intact
  • Focus on US inflation data for Fed cues
2 min read

Precious metals surge 1-2 pc over value buying at support levels

Gold and silver prices surged 1-2% as investors bought at support levels. Analysts see a bull run, with gold potentially reaching $6,000/oz by 2026.

"Gold has recovered post the January end collapse and is well on its way to what we believe should be $6,000 per ounce levels by CY26 end - Sandip Raichura"

Mumbai, Feb 13

Gold and silver prices surged on Friday as investors took to value buying after prices moderated due to huge declines in the previous session.

MCX gold April futures gained 1.08 per cent to Rs 1,54,480 per 10 grams on an intra-day basis. Meanwhile, MCX silver March futures added 2.59 per cent to Rs 2,42,564 per kg.

"Gold has recovered post the January end collapse and is well on its way to what we believe should be $6,000 per ounce levels by CY26 end," said Sandip Raichura, CEO of Retail Broking and Distribution and Director, PL Capital.

Though US President Donald Trump approved a trade deal with India and hinted at a potential one with Brazil reducing the trade related uncertainties, higher inflation and emerging split between the Northwest and the rest of the world sustain reserve bank buying of gold, the analyst said.

"Gold has support at Rs 1,54,000 per 10 grams while silver on MCX has support at Rs 2,42,000 per kg," a market participant said.

The broader uptrend remains intact, and the recent pullback appears to be healthy profit booking rather than structural weakness, market watchers said.

COMEX Gold is trading near the $4,850-$5,100 zone after a sharp correction from recent highs above $5,500-$5,600. The broader uptrend remains intact, with the recent pullback reflecting profit booking and healthy price digestion, analysts said.

Meanwhile, COMEX Silver is currently trading near the $73-$847 zone after a sharp correction from record highs above $121.

The dollar index surged to 97 on Friday, up 0.03 per cent from 96.93 in the previous session.

Investors remain keen on US inflation data due later on Friday for more monetary policy cues on the US Fed's interest rate trajectory.

Analysts said that structural supply deficits and steady industrial demand continue to underpin the bullish bias in silver while persistent safe-haven demand and steady central-bank accumulation could cause a bull run in gold for over 3 years.

- IANS

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Reader Comments

R
Rohit P
As a small investor, these swings are nerve-wracking. Bought some silver ETFs last month and was worried. This "healthy profit booking" narrative is reassuring. Long-term bullish trend is what matters for SIPs.
A
Arjun K
The mention of central bank buying is key. With global uncertainties, it's not just jewellery demand but sovereign funds driving prices. Smart move by RBI to keep adding to reserves. Gold is the ultimate hedge for a country like ours.
S
Sarah B
Living in India, I see gold as both an investment and a cultural necessity. Articles like this are helpful, but they often focus on big players. What does this mean for the common person buying a 10gm bar for a birthday?
V
Vikram M
Silver at ₹2.42 lakh per kg! The industrial demand angle is interesting for India's manufacturing push ('Make in India'). Might be a better bet than gold for younger investors looking at the next 10 years.
K
Karthik V
Respectfully, the article jumps between MCX and COMEX prices without clear conversion for the layman. For most Indians, the ₹1,54,480 per 10g figure is what matters. The US inflation data point is crucial though – our markets always react to Fed hints.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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