Gold futures extended their morning gains, staging a much-needed rebound following a challenging three-day selloff. Value buying emerged at lower levels on the MCX, providing support to the prices of these precious metals. In today’s session, MCX silver futures for March 5, 2026 increased by 10%, climbing Rs 23,739 to reach Rs 2,60,000 per kg. Gold futures for April 2, 2026 delivery experienced an increase of Rs 8,009, representing a rise of 5.5%, bringing the price to Rs 1,52,000 per 10 grams. In the international market, spot gold experienced a notable increase of 3.7%, reaching $4,837.16 an ounce by 0120, recovering from a near one-month low observed in the prior session. The yellow metal reached an unprecedented peak of $5,594.82 on Thursday. Spot silver surged 5.9% to $84.09 an ounce, following its record high of $121.64 reached last week.
Meanwhile, the dollar maintained its gains on Tuesday, bolstered by positive economic indicators and evolving expectations regarding US Federal Reserve policy, despite ongoing concerns about a potential partial US government shutdown. A stronger dollar generally exerts downward pressure on bullion, as it increases the cost of gold priced in dollars for holders of alternative currencies. In the past three days, MCX silver futures for March 5, 2026 experienced a decline of 40.5%, equivalent to Rs 1.63 lakh, concluding the Monday session at Rs 2,32,500 per kilogram. Gold futures for April 2, 2026 delivery experienced significant downward pressure, declining by Rs 40,000 or 22%, to Rs 1,43,991 per 10 grams. The sell-off intensified last Friday due to three significant catalysts. Markets responded to reports indicating that Donald Trump preferred Kevin Warsh for the position of Fed Chair, a decision interpreted as hawkish regarding interest rates and conducive to a stronger dollar. The situation was exacerbated by a margin increase from the CME, leading to position unwinding and significant liquidation of speculative purchases from China, thereby intensifying the downward pressure.
Manoj Kumar Jain noted that precious metals are experiencing significant volatility, although it is anticipated that key support levels will likely remain intact in the near term. Silver prices may maintain levels above $65 per troy ounce, whereas gold could find support around $4,440 per troy ounce on a weekly closing basis. Jain anticipates that gold and silver will experience volatility this week, influenced by variations in the dollar index, as the market awaits US jobs data and navigates ongoing geopolitical tensions. For gold, he identifies support levels between $4,620 and $4,555, while resistance is noted in the range of $4,770 to $4,910 per troy ounce. Silver exhibits support within the range of $71.20 to $67 and encounters resistance between $84 and $88.80 per troy ounce in the current trading session.
On the MCX, gold exhibits support levels ranging from Rs 1,40,000 to Rs 1,36,600, with resistance positioned between Rs 1,48,800 and Rs 1,52,500. In contrast, silver demonstrates support at Rs 2,28,000 to Rs 2,21,100, while its resistance is identified within the range of Rs 2,47,700 to Rs 2,61,000. He suggests acquiring gold within the range of Rs 1,44,000 to Rs 1,38,000, implementing a stop loss beneath Rs 1,35,000, with a target set between Rs 1,48,800 and Rs 1,52,500. Jain recommends purchasing silver in the range of Rs 2,40,000 to Rs 2,28,000, setting a stop loss beneath Rs 2,21,000, with target prices of Rs 2,50,000 to Rs 2,58,000.