Precious metals returned to the spotlight on February 18 as silver registered a sharp surge and gold extended its gains on the Multi Commodity Exchange, drawing renewed attention from traders and investors.

Silver futures on MCX jumped by Rs 8,316, or 3.63%, to Rs 2,37,099, marking one of the strongest single-day moves in recent sessions. Gold also moved higher, rising Rs 1,848, or 1.22%, to Rs 1,53,266, continuing its consolidation above key support levels after earlier record highs.

Silver Leads The Rally

The sharp move in silver came even as global safe-haven demand softened slightly following signs of easing geopolitical tensions. Optimism emerged after Iran and the United States indicated progress on guiding principles for future nuclear negotiations during talks in Geneva.

Despite this, institutional demand for precious metals remains firm. Gold exchange-traded fund holdings continue to rise gradually, while physical demand in major markets such as India and China has remained resilient. India’s gold imports also increased in January, reinforcing the underlying strength of bullion demand.

Market experts note that silver has corrected significantly from earlier peaks but continues to attract buying interest at lower levels. Strong support is seen in the Rs 2,25,000 to Rs 2,35,000 zone, where prices have repeatedly found stability.

Ponmudi R, CEO of Enrich Money, said silver futures are trading within a broad Rs 2,30,000 to Rs 2,70,000 band after a steep decline from record highs near Rs 4,20,000. He noted that holding above the current support range could revive momentum toward Rs 3,00,000 to Rs 3,25,000, while a breakdown below this base may extend the correction.

Gold Holds Firm After Consolidation

Gold’s advance has been more measured but structurally steady. After touching all-time highs near Rs 1,80,000 to Rs 1,81,000 earlier, the metal has entered a consolidation phase while maintaining a broader upward trend.

Experts say gold futures are currently trading within the Rs 1,50,000 to Rs 1,60,000 zone, with long-term supports intact. Sustaining levels above Rs 1,45,000 to Rs 1,50,000 is seen as crucial for maintaining bullish sentiment.

Even as geopolitical tensions show signs of easing, continued ETF inflows, central bank purchases and steady physical demand are providing a strong foundation for prices.

Outlook Remains Cautiously Positive

Analysts suggest that the outlook for precious metals remains cautiously optimistic, though short-term volatility is likely as global economic and political developments evolve.

For traders, technical levels will be key in determining the next direction. A sustained recovery above resistance zones could trigger a fresh rally, while failure to hold support may lead to further consolidation.

Investors are being advised to avoid chasing sharp price spikes and instead consider accumulating on dips near strong support levels. Long-term participants may treat corrections as opportunities to gradually increase exposure while maintaining diversification and disciplined risk management.

For now, gold and silver are showing resilience, but whether the current move develops into a sustained rally will depend on global cues, investor flows and technical breakouts in the weeks ahead.

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