Gold and Silver Prices Update: Gold Recovers to Rs 1.58 Lakh/kg, Silver Increases by Rs 10,000 – Key Insights
Gold and silver prices have shown a notable rebound on Monday, recovering from significant declines experienced last week. Both metals have seen increases in international and domestic markets, with silver futures gaining 4% and gold futures rising by 2%. This recovery follows a period of sharp corrections, where silver had dropped nearly 10% and gold about 2% in the previous week. Analysts suggest that the recent fluctuations in prices are influenced by various market dynamics, including speculative buying and shifts in investor sentiment.
Market Recovery and Price Movements
On the Multi Commodity Exchange (MCX), silver futures set to expire on March 5, 2026, surged by 4%, climbing to Rs 2,59,887 per kg. Meanwhile, gold futures for April 2, 2026, increased by Rs 3,049, reaching Rs 1,58,500 per 10 grams. This rebound marks a significant recovery after last week’s downturn, where silver experienced a steep decline. In global markets, gold prices hovered around the $5,000-an-ounce mark, with a rise of up to 1.7% on Monday, recovering nearly half of the losses incurred after a sharp drop from record highs earlier in the year.
Silver has exhibited greater volatility, driven by speculative trading and limited over-the-counter volumes. After a significant drop from its peak, silver prices rebounded by as much as 5% on Monday, moving back above $80 per ounce. Market analysts, including Manoj Kumar Jain from Prithvi Finmart, predict that gold will find support near $4,555 per troy ounce, while silver is expected to hold above $65 per troy ounce.
Investment Strategies and Market Insights
Jain recommends that investors consider accumulating gold within the Rs 154,000–152,000 range, with a stop loss set below Rs 150,500. He anticipates potential upside targets between Rs 156,800 and Rs 159,000. For silver, he advises buying in the Rs 250,000–244,000 range, with a stop loss below Rs 236,600, aiming for targets of Rs 2,55,500 to Rs 2,65,500. Analysts note that the recent surge in silver prices was largely driven by speculative buying rather than industrial demand, as investors sought to capitalize on potential gains.
A report from Mirae Asset Mutual Fund highlights that while the initial rally in silver was based on credible themes, it eventually moved beyond its fundamental support. Historically, silver has remained overshadowed by gold, which is preferred as a safe-haven asset during times of geopolitical uncertainty and concerns over fiat currency stability. Investors and central banks have consistently favored gold during such periods, reinforcing its status in the market.
Factors Behind Recent Price Corrections
The recent sharp corrections in both gold and silver prices can be attributed to several factors. A significant trigger was US President Donald Trump’s endorsement of former Federal Reserve Governor Kevin Warsh as a candidate to replace current Fed Chair Jerome Powell. Warsh is perceived as a policy hawk, likely to advocate for stricter inflation control and tighter monetary policies. This development strengthened the US dollar against major global currencies, diminishing the appeal of gold and silver as alternative investments.
Additionally, the steep rally in both metals in recent months prompted many investors to book profits, contributing to the downward pressure on prices. Analysts believe that the combination of these factors has led to the recent volatility in the precious metals market. As the situation evolves, market participants will be closely monitoring economic indicators and policy changes that could further influence gold and silver prices in the coming weeks.
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