Gold rebounded sharply on Friday, bolstered by a weaker US dollar, healthy spot demand, and ongoing geopolitical uncertainties.
On the MCX, April gold futures rose over 2% to ₹1,55,374 per 10 grams, while March silver futures jumped nearly 3% to ₹2,50,300 per kg, driven by short covering and renewed hedging demand amid global market uncertainty.
Internationally, gold also saw strong gains, with US April gold futures closing 1.8% higher at $4,979.80 per troy ounce.
Key Drivers of the Rally
A notable 0.20% drop in the US dollar index made dollar-denominated bullion cheaper for international buyers. Additionally, expectations of future US Fed rate cuts supported the yellow metal. According to a University of Michigan report, median one-year inflation expectations fell to 3.5%, the lowest since January 2025, fueling optimism for potential rate reductions.
On the geopolitical front, US-Iran talks began positively, though clarity on the next round of discussions is still pending.
Is It the Right Time to Buy Gold?
Experts suggest that while gold prices may remain volatile in the short term, the medium- to long-term outlook remains positive, with opportunities to buy on dips.
Rishabh Nahar, Partner and Fund Manager at Qode Advisors, said, “Gold may still be in the early stages of a longer-term structural repricing. Aggressive central bank purchases, particularly by China, and historically under-reported accumulation, indicate continued bullish momentum.”
Also read : Silver Prices Today Feb 6, 2026: Drop Over 3% Amid Strong US Dollar
Changing Nature of Demand
Gold ETFs are witnessing strong global demand, showing that investors are increasingly including gold as a strategic portfolio allocation, not just as a hedge against fear. Unlike crowded US equities, gold remains under-owned at a global portfolio level, meaning even modest reallocations of capital toward gold can have a significant impact due to limited supply growth.
Short-Term Considerations for Traders
Jigar Trivedi, Senior Research Analyst at IndusInd Securities, advised caution for short-term traders, noting that gold prices are nearing supply zones where physical demand typically thins. He suggested partial profit-taking for existing positions and selective fresh buying only after consolidation or clear macro cues such as a weaker dollar or falling bond yields.
Trivedi projected that MCX gold could reach ₹1,60,000 per 10 grams in the coming week, reflecting the ongoing bullish trend while emphasizing risk management.