Why Are Precious Metals Rising by 1-2 Percent?
Synopsis
On February 13, gold and silver prices surged as investors capitalized on value buying after previous declines. Industry experts predict a bullish trend, fueled by inflation concerns and strong demand from central banks. This article explores the factors driving this market movement and what it means for investors.
Key Takeaways
Gold and silver prices surged due to value buying.
MCX gold futures rose by 1.08%.
MCX silver futures increased by 2.59%.
Support levels for gold and silver are both critical for investors.
Analysts foresee a bullish trend driven by inflation and demand.
Mumbai, Feb 13 (NationPress) The prices of gold and silver soared on Friday as investors engaged in value buying following a drop in prices from the previous session's significant declines.
MCX gold futures for April increased by 1.08 percent to reach Rs 1,54,480 per 10 grams during intra-day trading. Simultaneously, MCX silver futures for March rose by 2.59 percent to Rs 2,42,564 per kg.
"Gold has bounced back after the collapse at the end of January and is on track towards what we predict could be $6,000 per ounce by the end of CY26," stated Sandip Raichura, CEO of Retail Broking and Distribution and Director at PL Capital.
Despite US President Donald Trump endorsing a trade agreement with India and suggesting a potential deal with Brazil, which could alleviate trade uncertainties, the ongoing inflation and a growing divide between the Northwest and other regions continue to bolster central bank purchases of gold, according to analysts.
"The support for gold stands at Rs 1,54,000 per 10 grams, while for silver on MCX, it is at Rs 2,42,000 per kg," mentioned a participant in the market.
The overall upward trend remains strong, with the recent pullback viewed as healthy profit-taking rather than a sign of structural weakness, as indicated by market analysts.
Currently, COMEX Gold is trading within the $4,850–$5,100 range following a sharp decline from recent peaks above $5,500–$5,600. Analysts believe that the overall upward trend persists, with the recent retraction attributed to profit booking and effective price digestion.
On the other hand, COMEX Silver is trading around the $73–$847 range after a notable correction from all-time highs above $121.
The dollar index increased to 97 on Friday, reflecting a rise of 0.03 percent from 96.93 in the previous session.
Investors are closely monitoring US inflation data expected later on Friday for insights into the interest rate direction from the US Federal Reserve.
Analysts pointed out that structural supply deficits and consistent industrial demand continue to support a bullish sentiment for silver, while ongoing safe-haven interest and steady accumulation by central banks could trigger a bull market for gold lasting over three years.
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Point of View
It is essential to recognize the implications of fluctuating precious metal prices on the economy. The recent surge reflects investor confidence amid uncertainty, illustrating the ongoing demand for safe-haven assets. This trend warrants attention as it shapes market dynamics and investor strategies in the evolving economic landscape.
NationPress
12 Jul 2026
Frequently Asked Questions
What caused the recent increase in gold and silver prices?
The recent increase is attributed to value buying by investors after previous declines, coupled with ongoing inflation and central bank demand.
What are the current support levels for gold and silver?
Gold has support at Rs 1,54,000 per 10 grams, while silver has support at Rs 2,42,000 per kg on the MCX.
What are the predictions for gold prices by 2026?
Experts predict that gold could reach $6,000 per ounce by the end of CY26, driven by ongoing demand and market conditions.
How does inflation affect the precious metals market?
Higher inflation often drives investors toward precious metals as safe-haven assets, leading to increased demand and price surges.
Why are central banks accumulating gold?
Central banks accumulate gold to diversify reserves and hedge against currency fluctuations and economic instability.
