Precious metals returned to the spotlight on February 18 as silver posted a sharp jump and gold extended its gains on the Multi Commodity Exchange (MCX). The sudden move has caught traders’ attention and raised a familiar question: is this the start of another sustained rally, or just a short-term bounce?
SILVER SURGES AS TRADERS RETURN TO THE METAL
Silver saw a strong upward move, with MCX silver rising by Rs 8,316 or 3.63% to Rs 2,37,099. The jump came even as safe-haven demand softened slightly following signs of easing geopolitical tensions.
Fresh optimism emerged after Iran and the United States signalled progress in talks over guiding principles for future nuclear negotiations during discussions in Geneva.
Despite global uncertainty, institutional appetite for precious metals remains visible. Gold ETF (Exchange Traded Funds) holdings continued to inch higher, and physical demand stayed firm in key markets such as India and China, with India’s gold imports rising in January.
Ponmudi R, CEO of Enrich Money, said, “MCX Silver futures are trading near the Rs 2,30,000–Rs 2,70,000 zone after correcting sharply from record highs around Rs 4,20,000. While the long-term bullish framework remains intact, the steep decline has placed prices below major moving averages, signalling short-term corrective pressure.”
He added, “Strong buying interest is visible in the Rs 2,25,000–Rs 2,35,000 support band, aligned with previous swing lows and broader structural support. A sustained hold above this zone, followed by a decisive recovery, could revive upward momentum toward Rs 3,00,000–Rs 3,25,000. Dips toward support may offer accumulation opportunities for positional traders; however, a decisive breakdown below this base could accelerate downside pressure and extend the corrective phase.”
GOLD EDGES HIGHER AFTER CONSOLIDATION
Gold also moved up, with MCX gold rising by Rs 1,848 or 1.22% to Rs 1,53,266. The metal has been consolidating after touching record highs earlier, but continues to hold above key support levels.
Ponmudi R added, “MCX Gold futures are trading near the Rs 1,50,000–Rs 1,60,000 zone after consolidating from all-time highs around Rs 1,80,000–Rs 1,81,000. While short-term price action remains range-bound, the broader uptrend structure continues to hold, with prices sustaining above critical long-term supports.”
IS THE RALLY SET TO CONTINUE?
Experts say the outlook for precious metals remains cautiously positive. While easing geopolitical tensions may temporarily reduce safe-haven demand, steady ETF inflows and resilient physical buying are providing underlying support.
Technical levels are now crucial. For silver, holding above the Rs 2,25,000–Rs 2,35,000 zone could keep hopes of a recovery alive. For gold, sustaining above Rs 1,45,000–Rs 1,50,000 and breaking higher resistance levels may determine whether the next leg of the rally unfolds.
WHAT SHOULD INVESTORS DO NOW?
For investors, experts suggest a balanced approach. Short-term volatility is likely to continue as global cues shift. Traders may consider accumulating on dips near strong support levels rather than chasing sharp rallies.
Long-term investors, meanwhile, may view corrections as opportunities to gradually add exposure, keeping portfolio diversification in mind. As always, risk management remains key, especially in a market that can swing quickly on global news.
For now, gold and silver are showing resilience, but the next move will depend on how global developments and technical signals evolve in the coming weeks.
