Gold, silver rates today: Gold price reclaims $5,000-mark, silver price above $86. Will the rally sustain?
Gold, silver rates today: Gold and silver prices remained steady on Wednesday, after recouping part of their losses following a sharp pullback from record levels.
Spot gold rose as much as 2%, surging above the $5,000 mark per ounce. Meanwhile, spot silver also gained 4% to $86.9 on Wednesday, February 4, during the Asian trading hours.
Gold prices surged more than 6% in the previous session as risk appetite improved and the US dollar softened. Despite that rebound, prices at Tuesday’s close remained about 12% below the all-time peak reached on January 29, though gold was still up nearly 15% so far this year.
What’s behind the rally in the gold and silver prices?
According to a Bloomberg report, Chinese funds and Western retail investors had amassed sizable positions in precious metals, while heavy call-option buying and inflows into leveraged exchange-traded products further stoked the rally—until a sharp selloff hit during Asian trading on Friday. The downturn extended into Monday.
The report further revealed that last weekend, crowds surged into Shenzhen, home to China’s largest bullion market, to purchase jewellery and bars ahead of the Lunar New Year. Chinese markets will shut for a little over a week starting February 16 for the holiday, even as major state-owned banks tighten oversight of gold investments to curb volatility.
Investors are also keeping a close eye on US-Iran tensions after President Donald Trump indicated that discussions on a new nuclear deal could take place in the coming days. Any progress on that front could reduce gold’s safe-haven appeal and put downward pressure on prices.
Precious metals jumped sharply last month, driven by speculative buying, geopolitical tensions, and worries over the Federal Reserve’s independence.
However, the rally abruptly reversed toward the end of last week—silver suffered its steepest single-day fall on record, while gold logged its biggest drop since 2013. The pullback came after multiple cautions from market observers that the gains had been excessive and unsustainably rapid.
Will the rally sustain in gold and silver prices?
According to Prithviraj Kothari, Managing Director at RiddiSiddhi Bullions Ltd., President of India Bullion and Jewellers Association Ltd. and Chairman at Jain International Trade Organisation, gold is likely to remain range-bound; meanwhile, silver may remain volatile in the near-term.
“Global factors such as expectations of a dovish US Federal Reserve, elevated geopolitical risks, fiscal stress in major economies, and sustained central-bank and ETF buying continue to support precious metals. Gold is likely to remain range-bound with a positive bias, while silver may see higher volatility but benefit from strong industrial demand, keeping medium- to long-term trends intact,” Kothari said.
On the technical outlook, Ponmudi R, CEO of Enrich Money, said that the COMEX Gold is trading near the $4,660–$4,860 reference zone after cooling off from the sharp spike above $5,500.
“The broader trend remains constructive, but the earlier vertical rally pushed momentum into overbought territory, triggering profit booking and orderly price digestion. Prices continue to hold above key moving averages, indicating a technical correction rather than a trend reversal. Strong demand is visible in the $4,500–$4,400 support band. Sustained consolidation above this base could set up the next leg higher, with a decisive move above $5,000–$5,100 reopening upside toward prior highs,” Ponmudi said.
On the silver price outlook, Ponmudi added that COMEX Silver is consolidating in the $75–$85 range after testing record highs above $121.6. “The broader bullish structure remains intact, though the sharp rally led to overbought conditions and aggressive profit booking. Prices are holding above key moving averages, suggesting healthy consolidation rather than trend exhaustion. Support lies at $71–$75, while a sustained breakout above $88–$90 could trigger the next impulsive move toward $100–$105. Structural supply deficits and steady industrial demand continue to support the bullish bias,” he said.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
