Gold prices rebounded sharply on Friday, February 13, as value buying lifted rates on the Multi Commodity Exchange (MCX) after a steep correction in the previous session. Investors stepped in at lower levels, triggering a strong recovery in both gold and silver futures during early trade.
MCX gold April contracts jumped by ₹2,000, or 1.30%, to ₹1,54,837 per 10 grams. The surge came a day after bullion witnessed heavy selling pressure amid broader market volatility. Silver also joined the rally, with MCX March futures climbing more than ₹5,600, or 2.4%, to ₹2,42,081 per kilogram.
The domestic rebound mirrored global trends. Internationally, US gold futures for April delivery gained 0.7% to $4,985.40 per ounce, while spot silver rose 2.1% to $76.76 per ounce. The bounce followed a sharp decline earlier this week when investors liquidated precious metals holdings to raise cash during a wider market selloff.
Market analysts believe that recent volatility has created attractive entry levels for traders. Jigar Trivedi, Senior Research Analyst at IndusInd Securities, noted that gold recovered to around $4,960 per troy ounce after falling more than 3% in the previous session. He explained that Thursday’s drop occurred during a broad market decline that prompted investors to sell even defensive assets like gold.
Strong US economic data has also influenced bullion sentiment. January’s nonfarm payrolls rose by 1,30,000 jobs, while December’s figures were revised down to 48,000. The unemployment rate slipped to 4.3%, and weekly jobless claims fell to 2,27,000 for the week ended February 7. The resilience of the US labour market has pushed expectations for the first Federal Reserve rate cut to July instead of June.
Higher interest rates generally reduce the appeal of non-yielding assets such as gold. As a result, the recent jobs data briefly weighed on bullion prices. However, traders are now awaiting fresh US inflation numbers, which could offer further clarity on the Fed’s policy direction.
Trivedi expects MCX gold April futures to rebound toward ₹1,54,000 per 10 grams as global prices stabilize. For silver, he sees potential upside toward ₹2,42,000 per kilogram, supported by short covering in international markets.
Aksha Kamboj, Vice President at the India Bullion and Jewellers Association (IBJA) and Executive Chairperson of Aspect Global Ventures, believes that gold’s recent pullback reflects profit-taking rather than a shift in long-term sentiment. Although prices are moving erratically in the short term, she sees a strong possibility that gold is preparing for a sustained bull run.
Ongoing geopolitical uncertainties, policy shifts, and inflation concerns continue to underpin long-term demand for safe-haven assets. While near-term volatility may persist, the broader outlook for precious metals remains constructive.
The sharp rebound in MCX gold highlights resilient investor interest, especially during corrections. Traders are closely watching the ₹1,54,000 level for April gold futures and ₹2,42,000 for silver as immediate technical markers. With global markets navigating uncertainty, gold continues to reaffirm its role as a reliable hedge in turbulent times.