In a dramatic turnaround, silver prices in India staged a strong recovery on Friday, bouncing back by nearly 3% to touch Rs 2.5 lakh per kilogram. The white metal's rebound was accompanied by a steady climb in gold prices, as escalating global risk concerns prompted investors to seek refuge in traditional safe-haven assets.
A Volatile Day for Precious Metals
The trading session on January 9, 2026, was marked by significant volatility for silver. Earlier in the day, the metal had experienced a steep plunge, falling by USD 4.32, or 5.53 per cent, in international markets. This sell-off drove it to an intraday low of USD 73.83 per ounce. However, sentiment shifted decisively later in the day, with silver managing to pare all its losses and settle at USD 76.92 per ounce in the international trade, setting the stage for the robust recovery in domestic prices.
Gold Rides the Wave of Uncertainty
Mirroring the positive momentum in silver, gold prices also moved higher. The yellow metal found strong buying interest as investors globally grew cautious. The flight to safety was triggered by a combination of geopolitical tensions and economic uncertainties, which typically enhance the appeal of bullion. Analysts noted that the price movement in India closely tracked the trends in global markets, where both metals recovered from their session lows.
Market Implications and Trader Sentiment
The sharp recovery in silver, from a steep 5.53% drop to a nearly 3% gain, underscores the extreme sensitivity of the commodity market to shifting risk perceptions. Traders and investors are closely monitoring international developments, which are having a direct and immediate impact on local prices. This price action highlights the importance of precious metals as a hedge during periods of market stress. Market experts suggest that if global concerns persist, the demand for both gold and silver could see sustained support in the near term, potentially leading to further price firmness in the Indian markets.
The day's trading serves as a clear reminder of the inherent volatility in precious metals. While the rebound provided relief to bulls, the earlier sharp fall indicates that the markets remain on edge, reacting swiftly to any change in the global risk landscape.
