Gold and silver prices moved sharply higher in domestic and global markets on Wednesday, supported by strong buying interest, a weaker dollar and expectations of lower interest rates.
Gold April 2 futures on the Multi-Commodity Exchange (MCX) traded higher during the session, rising Rs 5,891, or 3.83 per cent, to Rs 1,59,700. The contract opened at Rs 1,58,420 and touched intraday lows of Rs 1,56,553 and highs of Rs 1,60,755.
Gold had settled at Rs 1,53,809 in the previous session. The metal’s 52-week low stands at Rs 1,01,107, while the 52-week high is Rs 1,93,096.
Silver Futures Record Sharp Rise
Silver March 5 futures also recorded strong gains, climbing Rs 13,853, or 5.17 per cent, to Rs 2,81,868. The contract opened at Rs 2,78,015 and moved between Rs 2,75,044 and Rs 2,84,094 during the day.
The previous close was Rs 2,68,015. Silver’s 52-week low is Rs 1,09,741, while the 52-week high is Rs 4,20,048.
Global Gold Prices Extend Rally
In the international market, gold prices extended gains for a second straight session. Gold climbed more than 2 per cent on Wednesday, building on its strongest daily performance since 2008 in the previous session, as bargain-hunting and a softer dollar supported the metal.
Spot gold rose 2.2 per cent to $5,044.74 per ounce by 0112 GMT, after jumping 5.9 per cent on Tuesday, its biggest one-day gain since November 2008. The metal had hit a record high of $5,594.82 last Thursday. US gold futures for April delivery were up 2.7 per cent at $5,067.0 per ounce.
US Developments in Focus
The dollar weakened against most major currencies, except the yen, as traders consolidated recent gains driven by strong US economic data and expectations of a less-dovish Federal Reserve. A weaker dollar makes dollar-priced bullion more affordable for holders of other currencies.
Market sentiment was also influenced by political and policy developments in the United States. US President Donald Trump signed a spending deal into law on Tuesday, ending a partial government shutdown. However, the closely watched January employment report will not be released this Friday due to the shutdown.
Rate Cut Expectations Support Bullion
Investors are increasing bets on higher long-dated US Treasury yields and a steeper yield curve, as incoming Federal Reserve Chair Kevin Warsh is expected to push for interest rate cuts while reducing the central bank’s balance sheet.
Market participants currently expect at least two interest rate cuts by the Federal Reserve in 2026 and are awaiting ADP private payroll data later in the day for further cues on the policy outlook. Non-yielding assets such as gold typically perform better in a low-interest-rate environment.
Other Metals Gain; Key Levels Outlined
Other precious metals also traded higher. Spot silver rose 2.1 per cent to $86.92 an ounce after touching a record high of $121.64 last Thursday. Spot platinum gained 2.3 per cent to $2,260.50 per ounce after hitting an all-time high of $2,918.80 on January 26, while palladium rose nearly 3 per cent to $1,782.85.
Manoj Kumar Jain outlined key support and resistance levels for the session. He said gold has support at $4,884 to $4,770 per troy ounce and resistance at $5,000 to $5,145, while silver has support at $81.20 to $78.00 and resistance at $88.80 to $92.40 per troy ounce.
In the domestic market, Jain said MCX gold has support at Rs 1,50,800 to Rs 1,47,700 and resistance at Rs 1,55,500 to Rs 1,60,000, while MCX silver has support at Rs 2,58,800 to Rs 2,50,000 and resistance at Rs 2,78,000 to Rs 2,92,000.
He suggested buying gold in the Rs 1,54,000 to Rs 1,51,500 range with a stop loss below Rs 1,47,700, targeting Rs 1,55,500 to Rs 1,60,000. He also suggested buying silver in the Rs 2,70,000 to Rs 2,64,000 range with a stop loss below Rs 2,55,500, targeting Rs 2,82,000 to Rs 2,90,000.
