Silver and gold prices rebounded sharply in the futures trade on Tuesday following value buying by investors after a three-day rout in the domestic markets.
On the Multi Commodity Exchange (MCX), silver for March delivery surged Rs 29,372, or 12.43 per cent, to Rs 2,65,633 per kilogram. The white metal hit a high of Rs 2,70,398 per kilogram, gaining as much as Rs 34,137, or 14.4 per cent. It had closed at Rs 2,36,261 per kg on Monday.
The rebound came after a brutal sell-off that saw silver nosedive 41 per cent from Friday to Monday, easing by Rs 1,63,632 per kg and wiping out substantial investor wealth. The fall came after silver touched a record of Rs 4,20,048 per kg on January 29.
Gold prices also witnessed a strong recovery after a steep fall in the past three sessions. The April contract of the precious metal jumped Rs 7,923, or 5.5 per cent, to Rs 1,51,914 per 10 grams on Tuesday. In the past three sessions, gold lost nearly Rs 40,000, or 22 per cent, from its closing level of Rs 1,83,962 per kg on January 29.
Gold and silver staged a sharp recovery on Tuesday, snapping multi-day losses after extreme volatility earlier in the week. Gold surged around 5 per cent, while silver climbed over 10 per cent, driven by strong safe-haven demand and bargain buying after prior profit-taking. He said the earlier sell-off had been amplified by a firm dollar, speculative liquidations and technical pressures.
The rebound reflects renewed investor confidence and a technical bounce even as volatility remains elevated. Near-term consolidation around current levels could set the stage for further gains in bullion markets.
Meanwhile, silver and gold futures also recovered sharply in the international market. The March contract of silver gained USD 9.59, or 12.45 per cent, to USD 86.6 from the previous close of USD 77 per ounce on Comex in New York.
Also read: Gold futures recovers after early losses, silver slumps
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