On February 18, gold and silver prices experienced a notable rebound in both domestic and global markets, despite analysts warning of potential near-term volatility. This fluctuation comes as traders navigate shifting geopolitical cues and anticipate upcoming economic data from the United States.
Domestic Market Movements
On the Multi Commodity Exchange (MCX), gold futures for April 2026 delivery rose by ₹1,885, or 1.2%, reaching ₹1.53 lakh per 10 grams. Similarly, silver futures for March 5, 2026 settlement climbed by ₹4,556, or 2%, to ₹2.33 lakh per kilogram. This uptick in prices reflects a broader recovery trend after previous declines.
International Market Trends
In the international arena, spot gold rebounded to approximately $4,940 per ounce after two consecutive sessions of losses, while silver prices also saw a resurgence, climbing to $76 per ounce. These movements indicate a renewed interest in precious metals, often viewed as safe-haven assets during times of uncertainty.
Influencing Factors: Fed Cues and Geopolitical Developments
Kaynat Chainwala, AVP of Commodity Research at Kotak Securities, highlighted that traders are closely monitoring the US Federal Open Market Committee (FOMC) meeting minutes, the US Core PCE inflation print, and speeches from Federal Reserve officials. These elements are crucial for understanding the future trajectory of interest rates.
Recent commentary from US policymakers has been mixed. Fed Governor Michael Barr has expressed a preference for maintaining steady rates, while Chicago Fed President Austan Goolsbee has suggested that rate cuts could be on the table if inflation trends closer to the 2% target. This uncertainty contributes to market volatility.
Additionally, bullion prices faced downward pressure after Iran indicated a “general agreement” with the US regarding a potential nuclear deal, which alleviated immediate geopolitical concerns. The muted trading volumes in Asia, largely due to the Lunar New Year holidays, have further limited liquidity, amplifying short-term price swings.
Crude Oil Prices and Their Impact
Crude oil prices have also softened alongside precious metals. West Texas Intermediate (WTI) crude slipped to a two-week low near $61.9 per barrel following comments from Iran’s foreign minister that suggested progress in diplomatic talks with the US. Earlier, oil prices had risen due to concerns over potential disruptions in the Strait of Hormuz during military drills, but these gains were pared back as diplomatic developments reduced the associated risk premium.
The Gold Trend: A Pause, Not a Reversal
Aksha Kamboj, Vice President at the India Bullion & Jewellers Association (IBJA), noted that while gold has seen sharp profit-booking from recent highs—triggered by a stronger dollar and a broader sell-off in commodities—it continues to trade at elevated levels compared to previous weeks. This suggests that the broader uptrend may have paused rather than reversed.
Silver, on the other hand, has experienced a steeper correction due to its dual role as both an investment and industrial metal. The ongoing pressure reflects investment sentiment and concerns regarding industrial demand. However, sharp corrections often attract buying interest once markets stabilize.
Investment Strategies for Gold and Silver
Piyush Jhunjhunwala, Founder and CEO of Stockify, emphasized the importance of gold and silver as portfolio stabilizers in the current market cycle. He advised investors to avoid short-term speculation and adopt a systematic allocation strategy. Maintaining 5–10% of total assets in gold and silver, depending on individual risk appetite, is recommended. He also suggested staggered purchases over lump-sum investments.
Investment avenues include gold and silver exchange-traded funds (ETFs), sovereign gold bonds, and high-quality bullion, chosen based on tax considerations and liquidity needs. Precious metals can serve as a hedge against inflation and help preserve wealth during economic stress.
Innovations in the Jewellery Sector
Amid the volatility in bullion prices, the broader jewellery segment continues to thrive. Pune-based DAIMANTÉ, a new-age jewellery brand from Caratix Jovella, has entered the Indian luxury jewellery market, positioning itself as an AI-led, green luxury brand. The company combines artificial intelligence-assisted design with traditional Indian craftsmanship, creating unique pieces inspired by nature and geometry.
Conclusion
As gold and silver prices rebound, investors and traders remain vigilant amid fluctuating geopolitical cues and economic data. While the current market landscape presents challenges, it also offers opportunities for strategic investment in precious metals. With the right approach, gold and silver can continue to play a vital role in wealth preservation and portfolio stability.
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