Gold, silver rates rebound after worst crash in 17 years—Should you take positions again?

Gold and Silver Prices: After a steep fall in the last few sessions, gold and silver prices have made a strong comeback in both domestic and international markets. The rebound came as the US dollar weakened and investors returned to buy at lower prices. Experts say value buying and short covering helped lift prices after the recent heavy correction.

According to Manav Modi, Commodities Analyst at Motilal Oswal Financial Services Ltd, the recent recovery shows that investor interest has come back after gold corrected nearly 15 per cent over the last three trading days.

Why did gold and silver rebound after the recent selloff?

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Gold and silver had fallen sharply earlier this week. This drop created panic among traders. But soon, many investors saw it as a buying opportunity.

A weaker dollar supported precious metals globally. When the dollar falls, gold and silver often become cheaper for international buyers. This increases demand. At the same time, traders who had earlier sold their positions rushed to buy back, which pushed prices higher.

Spot gold jumped as much as 6 per cent and traded near $5,000. Silver performed even better, rising over 12 per cent, showing strong momentum as market sentiment improved.

Experts say the strength of this rebound will depend on whether most speculative positions have already been cleared and whether fresh demand continues, especially from Asian markets.

MCX gold prices today

In the domestic market, gold prices also moved up sharply.

On MCX April 2026 futures, gold is trading around Rs 1,59,700, up 3.83 per cent. During the day, prices surged by Rs 5,891.

Just a few days earlier, gold had shown a steep fall. On 30 January 2026, gold touched an all-time high of Rs 1,83,493 per 10 grams. But the next day, it slipped sharply and traded near Rs 1,50,890 on February 2, 2026.

From the peak, prices declined by Rs 32,603.

The earlier fall was linked to geopolitical tensions and movements in the dollar, which created volatility in the market.

Silver price crash and recovery

Silver showed an even bigger move compared to gold.

A few days ago, silver touched its lifetime high of Rs 4,20,048. After that, prices crashed sharply. It is now trading around Rs 2,84,800.

This means silver has dropped by Rs 1,35,248 from its peak level. Market participants called this one of the biggest corrections seen in recent times.

However, today silver prices bounced back strongly. On MCX, the white metal is up 6.26 per cent, rising by Rs 16,785 in a single day.

In the international market, silver is trading at $90.42 per troy ounce, up 8.62 per cent.

How are global factors and Asian demand affecting prices?

Global cues are also playing a key role in price movement.

Modi said that physical gold buying has been reported to be strong in Shenzhen. Investors are purchasing ahead of the Lunar New Year. Chinese markets will remain closed for more than a week from 16 February, which has added urgency to buying.

At the same time, state-owned banks in China have tightened rules on gold investment products to control excess volatility.

On the trade side, reports about an India–EU deal and comments by US President Donald Trump on reducing tariffs with India have improved market sentiment. However, official confirmation from India is still awaited.

Markets are now watching upcoming preliminary PMI data from major economies and US private payroll figures, which may influence further price trends.

International gold and silver performance

In global markets, gold is trading around $5,086.75, up 3.58 per cent.

Both metals are experiencing strong recovery trends from the recent correction. However, analysts recommend that investors still exercise caution due to the volatility of the market.

In general, the recovery trend indicates that the demand for precious metals is still strong. However, the future trend will be influenced by the economic signals of the global economy.

Gold holds strong above $5,000 globally

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.

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.