Gold Prices – Bullion Rates Surge Amid Dollar Weakness

Gold Prices – Gold and silver prices climbed sharply on Monday, February 9, mirroring firm global cues as the US dollar weakened and investors positioned themselves ahead of key economic data from the United States. The renewed strength in bullion added momentum to domestic futures trading and revived discussions around near-term price direction.

MCX Gold Extends Gains

On the Multi Commodity Exchange, gold futures were quoted at Rs 1,57,786, marking a gain of Rs 2,335 or 1.50 percent during the session. The rise comes after a period of correction from record highs, indicating that buying interest has resurfaced at lower levels.

Market participants attribute the recovery largely to the softer US dollar, which typically enhances the appeal of precious metals for international buyers. When the dollar weakens, commodities priced in the currency become relatively cheaper, supporting demand across global markets.

Traders are also closely watching upcoming US labour market data. The report is expected to provide fresh signals on economic strength and could shape expectations around future interest rate decisions by the Federal Reserve, factors that traditionally influence bullion prices.

Analysts Outline Key Gold Levels

According to Ponmudi R, Chief Executive Officer at Enrich Money, MCX gold futures are currently fluctuating within a broad range of Rs 1,49,000 to Rs 1,60,000. This follows a sharp pullback from earlier peaks near Rs 1,80,000 to Rs 1,81,000.

He noted that significant buying support has emerged between Rs 1,45,000 and Rs 1,50,000. As long as prices remain above this zone, the broader structure appears constructive. A decisive move beyond Rs 1,60,000 could open the door to further upside, potentially taking gold toward the Rs 1,65,000 to Rs 1,75,000 band over the medium term.

Despite intermittent volatility, analysts suggest that the larger trend continues to favour strength, provided support levels remain intact.

Silver Rebounds From Recent Lows

Silver outperformed gold in percentage terms, advancing by Rs 12,320 or 4.93 percent to trade at Rs 2,62,212 on MCX. The metal has been attempting to stabilise after experiencing a steep decline earlier this year.

Currently, MCX silver futures are moving within a range of Rs 2,50,000 to Rs 2,70,000, following a correction from record highs around Rs 4,20,000. While the long-term outlook remains constructive, the recent slide had dragged prices below key moving averages, indicating short-term pressure.

Ponmudi observed that robust demand has surfaced in the Rs 2,25,000 to Rs 2,60,000 support band. A sustained rebound from this area may help silver climb toward Rs 3,00,000 to Rs 3,25,000 in the months ahead. However, he cautioned that a breakdown below established support could prolong the corrective phase before any renewed rally develops.

What Should Investors Consider?

The latest upswing has once again prompted investors to reassess their strategy in gold and silver. Market experts advocate a measured approach rather than reacting impulsively to short-term price swings.

For existing investors, holding positions may be appropriate, as the medium- to long-term structure continues to appear positive. Although volatility cannot be ruled out, the key support zones highlighted by analysts remain largely undisturbed.

Prospective buyers are advised to avoid chasing prices after sharp advances. Instead, staggered buying during price dips near identified support levels may offer better risk management, particularly in a market influenced by global economic uncertainty.

Short-term traders might consider booking profits near resistance levels if momentum shows signs of fading. Long-term participants, however, may view corrections as opportunities to strengthen their holdings.

With global cues, currency movements and economic data shaping market direction, disciplined allocation and patience remain central to navigating the current bullion environment.