New Delhi, Oct 23 (PTI) Gold and silver bounced back on Thursday in futures trade after witnessing heavy selling earlier in the week, as traders resorted to value buying amid lingering geopolitical uncertainties.
Analysts said the prolonged US-China trade standoff remained a key focus for investors, with Washington reportedly mulling new export restrictions ahead of high-level negotiations and a potential meeting between President Donald Trump and Chinese President Xi Jinping at the APEC summit in South Korea next week.
On the Multi Commodity Exchange (MCX), gold for December delivery surged Rs 2,093, or 1.72 per cent, to Rs 1,23,950 per 10 grams. The contract hit a high of Rs 1,24,233 during the session.
Silver futures for December delivery also gained ground, rising Rs 3,532, or 2.43 per cent, to Rs 1,49,090 per kilogram. The March 2026 contract climbed Rs 4,153, or 2.83 per cent, to Rs 1,50,771 per kg, regaining the Rs 1.5 lakh mark.
"Gold prices recovered on MCX after witnessing a sharp sell-off earlier this week. The fall, driven by heavy profit booking from overbought levels and renewed optimism around US trade talks with India and China, marked one of the most significant corrections in months, nearly 5 per cent," Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities, said.
He added that uncertainty over shifting US presidential policy views led to a modest rebound as investors looked to re-enter at lower levels. The upcoming US CPI data remains a crucial factor for near-term direction.
On Wednesday, gold futures had plunged Rs 6,414, or 5 per cent, to close at Rs 1,21,857 per 10 grams, while silver dropped Rs 4,769, or 3.17 per cent, to Rs 1,45,558 per kilogram as profit-booking intensified after a strong rally.
The sharp correction coincided with gains in the US dollar and fading safe-haven demand as global risk appetite improved, analysts said.
Commodity markets remained shut during the first half of Wednesday for Diwali and resumed trading in the evening session.
On Tuesday, a special Muhurat trading session, a symbolic one-hour trading exercise, was conducted by stock and commodity exchanges, marking the beginning of Samvat 2082 this year. The session was conducted across BSE, NSE, MCX and NCDEX.
During the special one-hour Muhurat trading, gold futures depreciated by Rs 2,353, or 1.8 per cent, to finish at Rs 1,28,271 per 10 grams against Monday's closing of Rs 1,30,624 per 10 grams.
Silver also slumped by Rs 7,660, or 4.85 per cent, to end at Rs 1,50,327 per kg on Tuesday from the previous close of Rs 1,57,987 per kilogram on the MCX.
On Friday, gold and silver touched record highs, with gold hitting Rs 1,32,294 per 10 grams and silver touching Rs 1,70,415 per kilogram, respectively, on the MCX.
In the international market, Comex gold futures for December delivery were up 2.26 per cent at USD 4,157.31 per ounce on Thursday after falling 1.06 per cent in the previous session.
Earlier in the week, gold had plunged nearly 6 per cent -- its biggest one-day drop in over a decade -- after Trump adopted a conciliatory tone on trade and signalled expectations of a "strong and fair" deal with China.
Silver futures for December delivery in the overseas market also rebounded nearly 3 per cent to USD 49.03 per ounce on Thursday, supported by improved risk appetite. It settled marginally lower at USD 47.68 per ounce on Wednesday.
The white metal had plunged 7.16 per cent to settle at USD 47.70 per ounce on Tuesday, in its worst day since 2021, from an all-time high of USD 53.76 per ounce last week, before retreating sharply amid profit booking and a liquidity squeeze in London's silver market. PTI HG HVA HG BAL
BAL
