Gold, silver stage sharp comeback: Mirae Asset warns the turbulence isn’t over

Indian gold and silver futures rebounded strongly in early trade on Tuesday (February 3), tracking a recovery in international bullion after a historic sell-off last week that shook positioning across global metals markets. Analysts said the bounce reflects short-covering and bargain buying after a leveraged unwinding, rather than a return to the euphoria that dominated January.

Gold jumps over 3% on MCX

The MCX April 2 gold contract opened higher at ₹1.48 lakh per 10 grams, up ₹4,009 from its previous close of ₹1.43 lakh per 10 grams. Buying intensified through the session, pushing prices to a high of ₹1.49 lakh, a gain of ₹5,494 (3.81%).

By mid-session, gold was last seen trading around ₹1.49 lakh per 10 grams, up ₹5,155 (3.58%).

Silver surges nearly 9%

Silver saw an even sharper recovery. The MCX March silver contract opened at ₹2.45 lakh per kg, compared with the previous close of ₹2.36 lakh.

In later trade, silver was last quoted around ₹2.53 lakh per kg, up ₹16,939 (7.17%). The outsized move reflected both global price recovery and a bounce after heavy margin-driven liquidations in recent sessions.

From euphoria to shock — what just happened?

Mirae Asset’s latest bullion note describes the recent episode as one of the most extreme in modern precious metals history.

Gold and silver had surged almost relentlessly through 2025 and into January 2026, with silver in particular entering a parabolic, speculation-driven phase. However, that rally abruptly reversed last week, wiping out recent gains as liquidity thinned and leveraged positions were forced out.

According to Mirae, the trigger was a sudden shift in expectations around U.S. monetary policy following reports that Kevin Warsh could be nominated as the next Federal Reserve chair — a figure viewed as more hawkish. The prospect of tighter financial conditions strengthened the U.S. dollar, undermining the bullish “debasement trade” in gold.

At the same time, higher margin requirements on exchanges such as COMEX amplified the sell-off, forcing traders to liquidate positions and accelerating the fall — especially in silver.

Gold vs silver: different paths ahead

Mirae Asset suggests the aftermath may look different for the two metals.

Gold is likely to retain stronger structural support from central banks, geopolitical hedging, and safe-haven demand. Once leverage reduces, the metal could find firmer footing.

Silver, being smaller and more speculative, may stay volatile for longer. The recent crash has broken the perception of a “one-way trade,” making traders more cautious in the near term.

Early signs indicate that dip buying has already re-emerged in gold, while silver investors remain more hesitant.

How much damage was done?

As of Feb 2 data cited by Mirae:

• MCX silver was down 26.5% over one week, compared with 6.6% for gold.


• Over three months, silver was still up 59%, while gold was up 20%.

On a one-year basis, silver had gained about 150%, and gold around 76% — showing that despite the crash, both remain sharply higher over longer horizons.

What markets watch next

Analysts expect continued volatility as traders deleverage and wait for clearer signals from US data, the dollar, and Federal Reserve policy.

For now, the mood has shifted from exuberance to caution. Tuesday’s

rebound shows demand resurfacing at lower levels, but markets are likely to remain range-bound and headline-sensitive in the near term.