04 February,2026 12:03 PM IST | Mumbai | mid-day online correspondent
Representational image
Gold and silver, after experiencing a major downfall since the start of this week on Wednesday, observed a marginal hike. While the reasons behind their decline in the last few days were majorly because the margin requirements are set to take effect on the Chicago Mercantile Exchange (CME) in the US, the upward trend on Wednesday might just be because of the intensified buyback by the investors.
MCX gold futures during the start of this week fell by 1.77 per cent to Rs 1,45,132 per 10 grams on an intraday basis. Meanwhile, MCX silver March futures on February 1 dipped 6.88 per cent to Rs 2,47,386 per kg.
While the yellow metal experienced a significant downfall in the last few days. On Wednesday the prices of gold in Mumbai saw an increase of Rs 780. The price of 24-carat gold in Mumbai stood at Rs. 1,54,220 for 10 grams. Whereas the price of 22-carat gold also saw a marginal increase of Rs 720 and was recorded at Rs 1,41,390 for 10 grams.
Along with gold, silver prices also rised marginally on Wednesday. Rising by 3.17 per cent as compared to Tuesday, the price of silver on Wednesday stood at Rs 2,76,283 for 1 kg.
Analysts said that the free fall of gold and silver from their record highs started after the US President Donald Trump selected Kevin Warsh as the next US Fed Chairman. Investors reacted negatively because Warsh is considered more aggressive on interest-rate policy than earlier chairs, as reported by news agency IANS.
Rahul Kalantri, VP Commodities, Mehta Equities Ltd., while briefing about the market, further stated, "The decline was further supported by a stronger U.S. dollar, higher Treasury yields, and upbeat US inflation data (PPI and core PPI). As import duty was kept unchanged in the Union Budget, the domestic premium in bullion suffered, as reported by IANS.
The analyst further said, "Gold has support at Rs 1,39,650 to Rs 1,36,310 zone while resistance is at Rs 1,48,850 and Rs 1,50,950. Silver has support at Rs 2,48,810 and Rs 2,37,170 while resistance is at Rs 2,78,810 and Rs 2,95,470," the analyst said.
A recent report from WhiteOak Capital Mutual Fund said that investors should trim precious metals allocation back to a safeâÂÂhaven allocation level, especially on the silver, as its valuation had reached the most overextended level relative to historical periods.
Another reason for bearishness in precious metals can also be because Donald Trump nominated Kevin Warsh as the next Federal Reserve chair which fuelled a recovery in the US dollar.
Analysts further said Warsh would be less supportive of lower interest rates due to his hawkish stance on inflation control and emphasis on Fed independence, which prompted selling among precious-metals traders.
(With inputs from IANS)
