Gold rate jumps by over ₹3k; silver surges 6% on MCX— Time to buy or book profits?

Gold rate jumped sharply on the MCX on Monday, February 9, on a weaker dollar and healthy spot demand. MCX gold April futures jumped by more than ₹3,000, or 2%, to ₹1,58,500 per 10 grams on Monday morning. MCX silver March contracts rose by ₹15,000, or 6%, to ₹2,64,885 per kg.

The dollar's weakness supported gold prices. As news agency Reuters reported, the US dollar was at its lowest level since February 4, making greenback-priced metals cheaper for overseas buyers.

Persisting geopolitical uncertainties and expectations of further rate cuts by the US Federal Reserve remain key positives for gold and silver prices.

Iran’s top diplomat termed last Friday's US–Iran nuclear talks a “good start” and expressed hopes that they would continue, but Tehran has reiterated it would maintain its position on retaining the right to enrich uranium.

Experts anticipate geopolitical tensions may persist for longer, continue to drive investors to safe-haven assets.

Meanwhile, expectations for US Fed rate cuts are rising after San Francisco Fed President Mary Daly emphasised the need for one or two more interest rate cuts to counteract weakness in the labour market.

Is it the right time to buy gold, silver?

Experts appear bullish on gold and silver and recommend buying on dips for the long term. For short-term traders, the suggestion is to keep key levels in mind.

"We suggest buying gold between ₹1,54,000 and ₹1,52,000 with a stop loss below ₹1,50,500 for the targets of ₹1,56,800 and ₹1,59,000 and buying silver between ₹2,50,000 to ₹2,44,000 with a stop loss below ₹2,36,600 for the targets of ₹2,55,500, ₹2,62,000, and ₹2,65,500," said Manoj Kumar Jain of Prithvifinmart Commodity Research.

Jain expects gold and silver prices to remain volatile this week. He said gold has support at $4,910 and $4,840, while resistance is at $5,050 and $5,122 per troy ounce, and silver has support at $73.80 and $71.10, while resistance is at $80.40 and $83.80 per troy ounce in today’s session.

On the MCX, gold has support at ₹1,54,000 and ₹1,51,800, and resistance is at ₹1,57,700 and ₹1,60,000, while silver has support at ₹2,44,000 and ₹2,36,600 and resistance is at ₹2,55,500 and ₹2,62,000, said Jain.

Ponmudi R, CEO of Enrich Money, highlighted that MCX gold is stabilising after correcting from the ₹1,78,000– ₹1,80,000 zone.

"Strong demand is emerging near ₹1,50,000– ₹1,55,000, while the broader upward channel structure remains intact. A sustained move above ₹1,60,000 could revive bullish momentum toward ₹1,70,000– ₹1,80,000+ over the medium term," said Ponmudi.

"MCX Silver corrected into the ₹2,30,000– ₹2,35,000 support region — historically associated with strong physical and industrial buying. Current price action suggests absorption rather than aggressive distribution. A decisive breakout above ₹2,60,000 could act as a trigger for fresh upside toward ₹2,75,000– ₹2,90,000+," said Ponmudi.

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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.