Domestic bullion markets registered a sharp recovery on 3 February, as both gold and silver prices surged significantly following a period of sustained decline. The rise in prices is attributed to renewed investor interest at lower levels and developments in international trade.

Silver sees over 13% rise on MCX

On the Multi Commodity Exchange (MCX), silver prices experienced a notable jump of more than 13%. The steep increase follows recent losses in the white metal, prompting a wave of bargain buying from investors. The recent volatility had pushed silver prices to lower levels, making them attractive for short-term and retail participants looking to capitalise on the dip.

Gold prices climb more than 6% amid investor buying

Gold prices also moved higher on 3 February, registering a rise of over 6% on the MCX. The rebound came after a marked decline in previous sessions, encouraging fresh investment demand. Market participants re-entered positions, taking advantage of the lower price points. The upward movement in the yellow metal is being seen as a corrective phase supported by increased retail and speculative buying.

Trade developments support market sentiment

The recovery in both metals was further supported by recent announcements concerning Indo-US trade relations. Reports of positive developments in trade between India and the United States have bolstered sentiment across commodities. Market activity picked up following the anticipation of improved economic engagement, which is seen as a favourable factor for broader investment sentiment.

Prices react to value buying and global cues

The sharp price movements recorded on the day are largely seen as a result of value buying at reduced levels. Retail participants and short-term traders entered the market looking to benefit from lower valuations. Additionally, global factors, including fluctuations in the international precious metals market and shifts in currency exchange rates, have added to price movements.

Outlook remains focused on global trends and investor response

While the immediate price increase has come as a rebound from previous lows, market directions in the upcoming days are expected to remain influenced by international economic indicators, currency dynamics, and geopolitical developments. Investor sentiment and participation levels will continue to play a key role in determining short-term price behaviour for both gold and silver in the Indian market.

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