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Informist, Wednesday, Feb. 4, 2026

 

By Ashutosh Pati

 

MUMBAI – Futures contracts of gold and silver extended gains on Wednesday as buyers returned following the sharpest sell-off in decades on Friday and Monday, according to analysts. Market sentiment was also lifted as escalating tensions between the US and Iran boosted the safe-haven appeal of the precious metal. Gold prices on COMEX reclaimed the $5,000 per ounce mark while silver prices climbed above $89 per ounce.

 

At 1614 IST, the most-active April GOLD contract on the MCX was up 3.4% at INR 159,093 per 10 grams. The most-active April contract on COMEX was up 3% at $5,082.6 per ounce. The most-active March SILVER contract on the MCX was up 6.1% at INR 284,450 per kilogram and the same contract on COMEX was up 7.9% at $89.87 per ounce.

 

In the Mumbai spot market, the price of gold of 99.9% purity was INR 158,158 per 10 grams, higher than INR 150,708 per 10 grams Tuesday, said Kumar Jain, spokesperson for the India Bullion and Jewellers Association. Gold was trading at a premium of INR 5,000 per 10 grams, Jain said. 

 

"Gold extended its rebound for a second session, gaining over 2% to trade above $5,050 an ounce as buyers returned after a sharp fall from record highs," Kotak Securities said in a report. Prices also rose amid renewed appetite for risk, while year-to-date gains still stand near 17%, keeping the broader uptrend intact, the brokerage said.

 

Meanwhile, the US shot down an Iranian drone near one of its aircraft carriers Tuesday, stoking tensions between the two nations, as per media reports. This increased demand for the precious metal as a safe haven.

 

"Precious metals had surged aggressively through January, driven by speculative flows, global tensions, and anxiety around the Federal Reserve's autonomy. That rally stalled abruptly, with silver posting a record single-day fall and gold suffering its steepest drop since 2013," Kotak said.

 

While volatility is expected to persist in the short term, the current pullback looks more like a much-needed correction than the start of a new trend, analysts said. "Fundamentally, gold remains supported by macro uncertainty, softer real yields, and persistent geopolitical risk, though near term volatility is likely to stay elevated," according to Kotak.

 

Outlook for the rest of the session:

--MCX gold seen at INR 152,000–INR 162,500 per 10 grams

--COMEX gold seen at $4,980.0–$5,180.0 an ounce

--MCX silver seen at INR 267,000-INR 305,000 per kg

--COMEX silver seen at $85.00-$94.00 an ounce

End

 

US$1 = INR 90.43

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Saji George Titus

 

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