Gold and silver prices experienced a significant surge on Wednesday, February 4, 2026, on the Multi Commodity Exchange (MCX). The upswing was fueled by strong demand and a weaker dollar.
Gold Market Overview
MCX gold April contracts rose sharply, climbing by nearly ₹7,000, or 4.5%, to reach ₹1,60,755 per 10 grams. This increase reflects a rebound from recent lows, with prices climbing back above $5,000. International gold prices also saw gains of over 2%, further supported by the softened dollar. A weaker dollar typically makes dollar-backed gold more affordable for international buyers.
In early trading on Tuesday, MCX gold price for April futures opened 2.78% higher at Rs 1,48,000 per 10 grams, compared to its previous close of Rs 1,41,669. The yellow metal then surged over 6% to nearly Rs 1.53 lakh.
Silver Market Overview
Silver prices also mirrored this bullish trend, with MCX silver March contracts jumping by over ₹16,000, or 6%, to ₹2,84,094 per kg. Silver prices outperformed gold in percentage terms, continuing their recent pattern of sharper swings. MCX silver futures for March 5 were trading 6% higher, gaining ₹13,739 to trade around ₹2,50,000 per kg.
On Tuesday, MCX silver price for March futures opened 4% higher at Rs 2,45,711 per kilogram against the previous close of Rs 2,36,261, jumping nearly 13% to nearly Rs 2.67 lakh.
Factors Influencing the Price Surge
Several factors contributed to the surge in gold and silver prices. According to Rahul Kalantri, VP of commodities at Mehta Equities, the rebound comes after markets largely absorbed the nomination of Kevin Warsh as the new Fed Chairman. Safe-haven buying was strengthened amid rising geopolitical tensions, particularly after U.S. forces shot down an Iranian drone. However, diplomatic talks are still expected to continue. Support also came from a partial U.S. government shutdown and profit-taking in the dollar index from its highs. The US House of Representatives passed a government funding package, effectively ending a brief federal government shutdown that began on Saturday (January 31).
Expert Outlook
Kalantri notes that gold has support at $4,855 and $4,775, with resistance at $5,060 and $5,150. Silver has support at $79.80 and $74.75, with resistance at $89.15 and $94.80. In Indian Rupees (INR), gold has support at ₹1,47,650 and ₹1,45,310, while resistance is at ₹1,52,850 and ₹1,55,950. Silver has support at ₹2,59,810 and ₹2,52,170, with resistance at ₹2,74,810 and ₹2,80,470.
Global Market Trends
Internationally, silver climbed above $86 per ounce on Wednesday, marking its second straight session of gains. This increase follows a historic selloff that temporarily wiped out as much as 40% of silver's value. A weakened dollar and easing volatility in the metals market have contributed to the rebound, with dip buyers capitalizing on lower prices. Geopolitical tensions have further bolstered demand for safe-haven assets.
Broader Market Impact
The surge in gold and silver prices has also impacted related financial instruments. Gold and silver-linked exchange-traded funds (ETFs) experienced a sharp rebound, snapping a three-session sell-off. This recovery tracks the strong gains in international bullion markets and reflects renewed buying interest at lower levels.