Commodity traders in Mumbai witnessed a dramatic turnaround on Wednesday as gold and silver prices rocketed higher on the MCX, rebounding from Tuesday’s carnage. Silver, in particular, recovered from a 10,000-rupee drop, igniting bullish sentiment across the board.
Early trades saw April gold futures climb 1% to an intraday peak of 1,58,436 rupees per 10 grams. March silver futures leaped 3% to 2,62,892 rupees per kg. By 12:56 PM, positions held firm: gold at 1,58,357 rupees (+1,554 or 1%), silver at 2,61,949 rupees (+9,401 or 3.72%).
Weak US December retail sales data sparked hopes of Federal Reserve rate reductions, shifting forecasts to three cuts in 2023 from two. The dollar index weakened to 96.59 from 96.80, boosting foreign buying power for precious metals.
International cues aligned, with COMEX gold consolidating at 4,900-5,100 dollars after touching 5,500-5,600 dollars highs— a dip experts call normal consolidation amid strong fundamentals. Silver draws strength from industrial demand and supply shortages, supported at 65-70 dollars globally.
Technical charts show gold MCX support at 1,55,500 and 1,54,000 rupees, resistance at 1,57,700 and 1,59,000. Silver’s supports: 2,44,000 and 2,48,800 rupees; resistance at 2,60,000. Both trail January 29 records—gold 1,83,000, silver 4,20,000 rupees—but the recovery signals renewed confidence.
All eyes are on US non-farm payrolls and inflation metrics for Fed direction. In a rate-cut friendly environment, gold and silver stand to benefit, potentially climbing higher as investors seek stability amid global slowdown fears.