MUMBAI, India — Gold and silver prices showed signs of a reversal in the domestic market on Tuesday after retreating sharply from record highs in the previous session, supported by renewed buying and ongoing safe-haven demand.
MCX gold February futures rose 0.59 percent to Rs 135,744 per 10 grams, while MCX silver March futures surged 4.08 percent to Rs 233,700 per kilogram.
In global markets, spot gold fell 4.5 percent on Monday to $4,330.79 an ounce, while U.S. gold futures for February delivery settled 4.6 percent lower at $4,343.60. The decline followed an early rally that saw gold touch $4,584 per troy ounce and silver climb to $82.67 per ounce before both metals failed to hold gains.
Analysts attributed the sharp pullback to extended long positions, an increase in margin requirements by the Chicago Mercantile Exchange, and thin holiday trading conditions that amplified intraday volatility.
Despite the correction, analysts said safe-haven demand for precious metals remains intact. Geopolitical tensions resurfaced after Russia signaled it may reassess its position in peace negotiations following a reported Ukrainian drone attack on a Russian presidential residence.
Silver has continued to find support from tight inventories and fragile liquidity conditions. Analysts noted that unlike gold, which benefits from deep reserves in the London bullion market, silver lacks a comparable buffer, making prices more sensitive to supply constraints and delivery pressures.
“Safe-haven demand stemming from geopolitical tensions could lend support at lower levels,” said Rahul Kalantri, vice president for commodities at Mehta Equities Ltd. He said gold has support in the Rs 133,550–Rs 131,710 range, with resistance seen between Rs 136,850 and Rs 138,670. For silver, support is placed at Rs 219,150–Rs 217,780, while resistance lies in the Rs 226,810–Rs 228,970 zone.
A recent report by Motilal Oswal Financial Services said persistent inventory drawdowns across key global hubs, weakening arbitrage between Shanghai and COMEX, and repeated delivery pressures have highlighted the limited availability of deliverable silver, adding to price volatility. (Source: IANS)
