After a punishing fall on Tuesday, precious metals flipped the script Wednesday, powering ahead on the MCX with gold breaching 1.58 lakh and silver soaring past 2.61 lakh. The session’s energy reflected shifting global narratives favoring safe-haven assets.
April-delivery gold rose about 1% to hit 1,58,436 rupees per 10 grams intraday. March silver contracts vaulted 3% to 2,62,892 rupees/kg. Midday quotes around 12:56 PM: gold 1,58,357 rupees (+1% or 1,554 rupees), silver 2,61,949 rupees (+3.72% or 9,401 rupees)—a sharp reversal from silver’s 10,000-rupee plunge.
Driving the surge: Subpar US consumer spending data, hinting at economic softening and prompting upgraded Fed rate-cut odds to three this year. Dollar index slipped to 96.59, aiding importer demand.
Overseas, COMEX gold stabilized 4,900-5,100 dollars post-5,600 highs, viewed as profit-taking in a bullish trend. Silver’s edge comes from industrial needs and supply gaps, with 65-70 dollar support intact.
MCX levels: Gold support 1,55,500/1,54,000, resistance 1,57,700/1,59,000 rupees. Silver support 2,44,000/2,48,800, resistance 2,60,000. Recovery distances from January peaks (gold 1,83,000, silver 4,20,000) underscore volatility, yet momentum builds.
Traders await US employment and inflation reports for policy signals. Rate easing bolsters gold and silver’s allure, setting the stage for sustained rallies if data disappoints further.