After four consecutive days of decline, gold and silver prices have staged a powerful comeback in the domestic market. What began as a mild recovery on Tuesday turned into a sharp rally on Wednesday as soon as trading opened on the Multi Commodity Exchange (MCX). Both precious metals recorded significant gains, surprising investors who had expected prices to remain under pressure for a longer period.

Silver witnessed the biggest jump, rising by more than ₹15,000 per kilogram in a single session. Gold prices also moved higher, reflecting renewed buying interest and improved market sentiment.

Silver Records a Strong Comeback

Silver prices have been highly volatile over the past week. Until February 2, the metal was continuously losing value, and within just four days, prices had dropped by nearly ₹2 lakh per kilogram. However, the trend reversed sharply this week.

On Tuesday, silver closed at ₹2,68,801 per kg on MCX. When the market opened on Wednesday, prices surged to ₹2,84,094 per kg. This marked an increase of approximately ₹15,293 in a single day, making it one of the strongest one-day gains in recent times.

This sudden rise has caught the attention of both traders and long-term investors, as silver had been under selling pressure for several sessions before this rebound.

Nearly ₹60,000 Rise in Two Days

Just earlier this week, silver prices had fallen close to ₹2.25 lakh per kg. Lower prices encouraged fresh buying from investors and industrial users alike. As a result, silver prices jumped by nearly ₹60,000 per kg within only two trading sessions.

Market experts believe that bargain hunting played a major role in this recovery. Many investors saw the dip as an opportunity to re-enter the market, which led to a strong bounce-back in prices.

Gold Prices Also Gain Momentum

Gold followed a similar pattern and registered a notable increase after days of decline. On Tuesday, gold closed at ₹1,53,809 per 10 grams on MCX. By Wednesday morning, the price climbed to ₹1,60,755 per 10 grams.

This represents a rise of around ₹6,946 in a single session. The upward movement in gold suggests that investors are once again turning toward safe-haven assets amid changing global and domestic market conditions.

Still Below Record High Levels

Despite the recent surge, both gold and silver are still trading well below their historic peak levels.

Silver had created history on January 29 when it crossed ₹4 lakh per kg for the first time and touched a record high of ₹4,20,048 per kg. Compared to that level, silver is currently cheaper by nearly ₹1,35,954 per kg.

Gold also reached its all-time high on January 29, when the price of 10 grams touched ₹1,93,096. Even after the latest rise, gold remains about ₹32,341 below its record peak.

This gap indicates that while prices have recovered sharply in the short term, they are still far from their highest levels seen earlier this year.

Reasons Behind the Sudden Rise

Several factors are believed to be responsible for the sharp increase in gold and silver prices:

1. Buying After Price Correction:
   After four days of continuous decline, prices reached relatively lower levels, encouraging investors to return to the market and make fresh purchases.
2. Global Market Signals:
   International cues and movements in global commodity markets have also supported the upward trend in precious metals.
3. Changing Investor Sentiment:
   Investors’ outlook toward gold and silver has shifted again due to uncertainty in financial markets, pushing demand higher.
4. Short-Term Trading Activity:
   Traders taking advantage of volatility have contributed to the rapid price movement in both metals.

Impact on Buyers and Investors

The sharp fluctuation in prices is expected to influence both retail buyers and investors in the coming days. Those who were planning to buy silver at lower levels may now reconsider their timing, while gold buyers could wait for more stability before making purchases.

Market analysts suggest that volatility may continue in the near term, and prices could remain sensitive to global economic developments and currency movements.

What Lies Ahead

Experts believe that gold and silver prices will continue to react to international market trends and domestic demand. While the recent rally has boosted confidence, sustained growth will depend on factors such as inflation outlook, interest rate expectations, and geopolitical developments.

Investors are advised to track official market updates closely and avoid making decisions based solely on short-term price movements.

Disclaimer:
This article is prepared for informational purposes only. The gold and silver prices mentioned are based on current market trends and expert analysis. KT does not guarantee accuracy of prices and is not responsible for any financial gain or loss resulting from investment decisions. Readers are advised to verify rates from official sources before trading or purchasing precious metals.