MCX Gold Hits ₹1,54,837 and Silver Surges to ₹2,43,081

The precious metals market witnessed a strong recovery on Friday, February 13, as prices of gold and silver surged on the Multi Commodity Exchange (MCX). This upward movement comes after a period of intense volatility and a sharp sell-off in the previous trading session. 30%, reaching a level of ₹1,54,837 per 10 grams. 4%, trading at ₹2,43,081 per kilogram. The recovery is being attributed to renewed buying interest at lower levels and supportive cues from international markets.

Current Trading Status on MCX

Trading on the MCX opened on a positive note on Friday, with both gold and silver maintaining a steady upward trajectory throughout the morning session. The gold April contract surpassed the ₹1,54,800 mark, reflecting a significant bounce back from the previous day's lows. Market participants noted that the sharp correction seen earlier provided an entry point for buyers, leading to a surge in volumes. Silver, which had faced a historic decline of nearly 11% in the preceding session, saw aggressive short covering. The March silver contract touched a high of ₹2,43,081 per kg, reclaiming a substantial portion of the ground lost during the recent market turbulence.

Global Market Trends and Spot Prices

The domestic price hike mirrored the positive sentiment in global markets. 40 per ounce. 76 per ounce. Analysts suggest that the recovery in precious metals is partly due to a stabilization in global equity markets, which reduced the need for investors to liquidate gold positions to meet margin calls in other asset classes. The weakening of the dollar index from its recent peaks also provided a tailwind for dollar-denominated commodities like gold and silver.

Impact of US Nonfarm Payroll Data

Economic data from the United States has played a pivotal role in shaping market expectations. The latest report from the US Bureau of Labor Statistics revealed that nonfarm payrolls increased by 1,30,000 in January, a figure that aligned closely with market forecasts. 3%. While a strong labor market typically gives the Federal Reserve more room to maintain higher interest rates, the data wasn't strong enough to deter hopes of eventual rate cuts. According to market reports, traders are now pricing in a potential interest rate reduction by the Federal Reserve in July, which has provided a floor for gold prices.

Short Covering and Market Liquidity Factors

A significant portion of Friday's price action in silver can be attributed to short covering. After the massive 11% drop in the previous session, many traders who had held short positions moved to close them, creating a surge in buy orders. This technical factor, combined with improved liquidity in the commodity markets, helped stabilize prices, while in the domestic physical market, demand remains consistent due to the ongoing wedding season in India. Jewellers and retail buyers often view price corrections as an opportunity to replenish stocks, which provides additional support to the MCX rates during periods of global volatility.

Federal Reserve Policy and Interest Rate Expectations

The trajectory of precious metals remains closely tied to the monetary policy stance of the US Federal Reserve. Investors are meticulously monitoring inflation data and comments from Fed officials to gauge the timing of future rate adjustments. Higher interest rates generally increase the opportunity cost of holding non-yielding assets like gold, but persistent economic uncertainties and central bank purchases continue to bolster the metal's appeal. According to reports, several central banks across the globe have been increasing their gold reserves, a trend that provides long-term structural support to the market regardless of short-term price fluctuations.