Gold and silver prices on the Multi Commodity Exchange (MCX) opened sharply higher on Tuesday, tracking a strong rebound in international bullion markets and supported by renewed buying interest at lower levels. Fresh buying interest at lower levels triggered a sharp rebound in gold and silver-linked exchange traded funds (ETFs) on Tuesday, February 3, snapping a three-session sell-off and lifting prices in line with a strong recovery in MCX futures.
On the MCX, gold prices opened sharply higher, signalling a turnaround after the recent decline. MCX gold April futures began the session 2.78% higher at ₹1,48,000 per 10 grams, compared with the previous close of ₹1,41,669. Buying momentum strengthened through the session, pushing the yellow metal to an intraday high of ₹1,49,996 per 10 grams, reflecting strong demand at lower price points.
Silver prices outperformed gold in percentage terms, continuing their recent pattern of sharper swings. MCX silver March futures opened 4% higher at ₹2,45,711 per kg, up from the previous close of ₹2,36,261. As buying intensified, silver prices surged nearly 9% to touch an intraday high of ₹2,57,480 per kg. MCX silver futures for March 5 were trading 6% higher, gaining ₹13,739 to trade around ₹2,50,000 per kg. Meanwhile, gold futures for April 2 delivery climbed ₹4,309, or nearly 3%, to trade at ₹1,48,300 per 10 grams.
Global recovery
The recovery was not limited to domestic markets. International bullion prices also rebounded strongly after hitting recent lows. Spot gold jumped 3.7% to $4,837.16 an ounce by 0120 GMT, recovering from a near one-month low recorded in the previous session. Despite the recent correction, gold remains close to historic levels, having touched an all-time high of $5,594.82 per ounce last Thursday. Spot silver rose even more sharply, gaining 5.9% to trade at $84.09 an ounce, after hitting a record peak of $121.64 per ounce last week.
Gold, silver ETFs
The sharp rebound in futures markets translated into significant gains across gold and silver ETFs, with net asset values (NAVs) broadly tracking the strength seen on the MCX. Silver ETFs, in particular, posted larger one-day percentage gains as silver futures outpaced gold futures during the session.
Among silver ETFs, Tata Silver Exchange Traded Fund traded at a NAV of ₹34.39 and surged 7.52% during the day, while delivering an exceptional one-year return of 278.25%. Nippon India Silver ETF saw its NAV rise to ₹317.06, gaining 6.07% on the day with a one-year return of 251.61%. Zerodha Silver ETF advanced 5.56%, trading at a NAV of ₹33.49. ICICI Prudential Silver ETF gained 4.36% to reach a NAV of ₹331.08 and posted a one-year return of 253.59%.
HDFC Silver ETF was among the top performers, climbing 8.68% with its NAV reaching ₹252.61 and a one-year return of 251.33%. Aditya Birla Sun Life Silver ETF rose 6.21% to a NAV of ₹263.03, delivering a one-year gain of 252.74%. SBI Silver ETF traded at a NAV of ₹324.05, rising 7.80% and posting a one-year return of 251.28%. Axis Silver ETF gained 4.41%, with its NAV at ₹328.86 and a one-year return of 251.68%.
UTI Silver ETF moved up 7.77% to a NAV of ₹315.39, showing a one-year return of 247.95%. Kotak Silver ETF advanced 7.79% to ₹320.14, with a one-year gain of 252.71%. DSP Silver ETF traded at a NAV of ₹318.17, rising 5.66% on the day and delivering a one-year return of 253.07%. Mirae Asset Silver ETF posted the sharpest jump, surging 9.44% to a NAV of ₹256.59, while maintaining a one-year return of 251.81%.
Gold ETFs also recorded steady gains, though their one-day advances were more modest compared with silver. Tata Gold Exchange Traded Fund traded at a NAV of ₹15.82, gaining 2.40% during the session and delivering a one-year return of 98.11%. Nippon India Gold BeES rose 3.95% to a NAV of ₹135.86, with a one-year gain of 99.30%. Zerodha Gold ETF climbed 3.03%, trading at a NAV of ₹25.81 and showing a one-year return of 99.64%.
ICICI Prudential Gold ETF moved 2.95% higher to a NAV of ₹140.45, with a one-year return of 99.82%, while SBI Gold Exchange Traded Scheme gained 1.85% to ₹139.97 and posted a one-year return of 99.38%. HDFC Gold ETF rose 4.61% to a NAV of ₹126.87, delivering a one-year return of 98.71%. Kotak Gold ETF advanced 5.11% to ₹136.79, with a one-year gain of 99.56%, and Axis Gold ETF climbed 4.71% to a NAV of ₹136.87, showing a one-year return of 99.59%.
Other gold ETFs also remained firmly in positive territory. Mirae Asset Gold ETF gained 3.09% to ₹143.65, UTI Gold ETF rose 3.00% to ₹136.65, DSP Gold ETF edged up 0.98% to ₹143.61, Groww Gold ETF advanced 4.10% to ₹160.17, Birla Sun Life Gold ETF rose 2.24% to ₹129.98, and Union Gold ETF gained 2.05% to ₹160.57. All of these funds continued to maintain strong one-year returns ranging between 97.69% and 99.83%.
Market outlook
Market experts said the sharp rebound does not necessarily mark the end of volatility, but suggests that the broader bullish structure in precious metals remains intact. Ponmudi R, CEO of Enrich Money, said MCX gold futures are currently consolidating within a wide range after an extraordinary rally and subsequent correction.
“MCX Gold futures are trading within the ₹1,38,000–₹1,48,000 zone after posting record highs near ₹1,80,779. Volatility remains elevated following the melt-up and subsequent profit taking, but prices are still holding above major structural supports,” Ponmudi said. He added that the broader rising channel continues to remain intact, with pullbacks being absorbed by buyers rather than triggering sustained breakdowns.
According to him, the ₹1,43,000–₹1,45,000 zone, which earlier acted as a strong support area, has now turned into immediate resistance. “A sustained move above ₹1,50,000 could revive upside momentum toward ₹1,65,000–₹1,70,000, keeping the medium-term outlook positive despite near-term swings,” Ponmudi noted.
On silver, Ponmudi said the metal has undergone a much sharper correction after an extended and overheated rally, but continues to exhibit strong bullish characteristics on a structural basis. “MCX Silver futures have corrected sharply and are trading near key structural levels between ₹2,20,000 and ₹2,60,000, after surging above ₹4,00,000 and printing record highs near ₹4,20,048,” he said.
He explained that the aggressive rally pushed momentum indicators into extreme overbought territory, resulting in heat-led consolidation and sharp intraday pullbacks. “Despite this, the broader trend remains decisively bullish, with the steep rising channel and major exponential moving averages (EMAs) providing strong support,” Ponmudi said.
He identified the ₹2,20,000–₹2,35,000 band as a critical base for silver, while the ₹2,60,000–₹2,70,000 zone now acts as immediate resistance. “If momentum sustains, silver could extend its move toward ₹3,25,000. Dips continue to favour accumulation for positional traders,” he added.