New Delhi, February 11 Gold and silver prices rebounded sharply in futures trading on Wednesday, with the white metal rising by nearly 4 per cent or Rs 9,665 to Rs 2.62 lakh per kg and the yellow metal rising to Rs 1.58 lakh per 10 grams due to firm global trends.
Analysts said a weak US dollar and renewed geopolitical tensions between the US and Iran boosted demand for safe-haven assets.
On the Multi Commodity Exchange (MCX), silver for March delivery surged by Rs 9,665, or 3.83 per cent, to Rs 2,62,213 per kg. The white metal had fallen by Rs 10,072, or nearly 4 per cent, to settle at Rs 2,52,548 per kg on Tuesday.
Gold futures also saw value buying, with the April contract rising by Rs 1,397, or 0.89 per cent, to Rs 1,58,200 per 10 grams. In the previous session, the yellow metal had finished lower at Rs 1,56,803 per 10 grams.
"MCX gold rose by nearly 1 per cent, regaining levels above Rs 1.58 lakh per 10 grams, while silver outperformed the yellow metal with around a 3 per cent gain, crossing Rs 2.60 lakh per kg," Gaurav Garg, Research Analyst at Lemonn Markets Desk, said.
He added that investor sentiment strengthened after softer US economic data raised hopes of interest rate cuts and signaled slowing growth.
In the international market, Comex silver futures for March delivery gained USD 3.11, or 4 per cent, to USD 83.50 per ounce, while gold for April delivery rose by nearly 1 per cent to USD 5,071.86 per ounce.
"Gold and silver prices rose as US Treasury bond yields fell after data showed December retail sales growth stalled, signaling a softening economy ahead of key jobs data," Manav Modi, Analyst, Commodities at Motilal Oswal Financial Services Ltd, said.
The dollar index fell 0.23 per cent to trade at 96.59, further supporting bullion prices in the global markets.
Meanwhile, Fed President of Cleveland, Beth M Hammack, said that the US central bank faces no urgency to change the setting of interest rates this year amid a "cautiously optimistic" outlook for economic activity.
Modi added that speculative positions in the precious metals have largely washed out of the market, and traders are now awaiting fresh triggers such as the US jobs data report due to be released later in the day and CPI numbers later this week.
An expert said: "Renewed US-Iran tensions also boosted demand for safe-haven assets after reports indicated that Washington may deploy additional naval assets (an aircraft carrier strike group) in the region, if negotiations over Tehran's nuclear programme fail".
