Precious metals shined brightly on Friday as gold and silver prices in India and international markets extended their gains. The rally was fueled by new economic data from the United States that fell short of expectations, strengthening the argument for the Federal Reserve to reduce interest rates sooner rather than later.
Metals Glitter on MCX and Global Markets
The rally was pronounced on the Multi Commodity Exchange of India (MCX). February gold future contracts surged by ₹1,160 to reach ₹1,38,902 per 10 grams. This upward move contributed to a weekly gain of approximately 2% for the yellow metal. In the international spot market, gold prices rose by 0.5% to $4,496 per troy ounce.
The performance of silver was even more spectacular. March silver futures on MCX witnessed strong buying interest, soaring by ₹7,476 per kilogram. This impressive 3% jump pushed the price above the significant ₹2.5 lakh mark to settle at ₹2,50,800 per kg. For the week, MCX silver is up by nearly ₹14,510 per kg, and it has gained ₹15,101 so far this month. This recovery comes after a sharp correction where silver prices had crashed by ₹14,487 (6%) over the previous two trading sessions.
Globally, spot silver prices mirrored the bullish sentiment, gaining 2.73% to $75.50 per ounce, marking a weekly rise of over 8.6%.
The US Jobs Data Trigger
The primary catalyst for this precious metals rally was the latest US employment report. Data from the Labor Department showed that US nonfarm payrolls increased by 50,000 in December. This figure was below the Reuters forecast of 60,000 jobs and also lower than the downwardly revised November number of 56,000.
While the data indicated a slightly cooling labour market, the unemployment rate dipped to 4.4%, against a forecast of 4.5%. This mixed picture has investors anticipating that the Federal Reserve, which closely monitors employment figures, may have room to cut interest rates to support economic growth. Market tools currently price in expectations for two rate cuts in 2026.
Expert Outlook and Market Watch
Commenting on the silver price trajectory, Ponmudi R, CEO of Enrich Money, provided key technical levels. "Sustained strength above ₹2,48,000- ₹2,50,000 keeps the upside momentum intact," he said. He added that a breakout beyond ₹2,52,000- ₹2,55,000 could accelerate gains toward ₹2,60,000- ₹2,70,000. On the downside, a break below ₹2,44,000 could expose supports in the ₹2,43,000– ₹2,38,000 zone, where fresh buying interest is likely to emerge.
Beyond economic data, investors are also watching for a potential US Supreme Court ruling on the legality of former President Donald Trump's tariffs, which could impact trade policy. Geopolitical tensions remain elevated, highlighted by the US seizure of a Russian-flagged oil tanker linked to Venezuela, which drew a sharp rebuke from Moscow, and reports of a Russian hypersonic missile strike in Ukraine.
Disclaimer: Investors are advised to consult certified experts before making any investment decisions.
