Gold and silver prices were trading on a mixed note on the Multi Commodity Exchange (MCX) on Monday, November 2, as precious metals attempted to recover from the sharp sell-off witnessed towards the end of October.
While silver led the rebound with a stronger gain, gold remained largely unchanged.
On MCX, gold futures for December 4 delivery were trading at ₹1.38 lakh per 10 grams, down 0.09%. Silver futures for December 4 delivery were quoted at ₹1.82 lakh per kg, up 1.70%.
The recovery in domestic bullion prices comes amid a rebound in international markets, supported partly by easing crude oil prices and reduced inflation concerns. However, analysts cautioned that the latest gains do not necessarily signal a reversal in the broader downward trend.
Why are gold and silver prices recovering?
Gold and silver have been attempting to recover after the sharp sell-off towards the end of October.
International spot gold gained 0.6% to $3,899.39 an ounce, while silver rose 1.3% to $49.76, according to Vikram Subburaj, CEO of Giottus.
Lower oil prices have offered some relief on the inflation front. Brent crude declined around 2% to $111.15 a barrel, easing concerns over energy-driven inflation and its implications for interest rates.
However, the rebound follows a sharp correction. Gold fell 3.7% on Friday (October 30), while silver declined nearly 6%, reflecting selling pressure across bullion markets.
According to Gaurav Garg, Head of Research at Lemonn, the current rebound could partly reflect short-covering and bargain buying after the recent correction. Silver has recorded a stronger percentage gain during the recovery, although its recent correction has been significant.
Is the recovery in gold and silver sustainable?
Analysts believe it is too early to conclude that bullion prices have reversed their downward trend.
Nirpendra Yadav, Senior Research Analyst at Bonanza, said the technical recovery needs to be viewed against the continuing weakness in international bullion prices. One positive trading session is not sufficient to confirm a reversal, he said, adding that the immediate focus should be on whether gold and silver can establish a short-term price base.
Until prices stop making lower lows on daily charts and reclaim important short-term moving averages, the broader bearish bias is likely to remain intact, Yadav said.
Garg, too, said the rebound would need stronger follow-through to indicate a sustained recovery.
Swapnil Aggarwal, Director at VSRK Capital, expects silver prices to remain under pressure through the end of 2026, with elevated US interest rates and the absence of Federal Reserve rate cuts likely to weigh on the metal. He does not anticipate a significant recovery in the near term and advised investors to adopt a wait-and-watch approach.
Aggarwal said investors could consider adding small quantities if silver prices decline towards ₹1,75,000 per kg, while a meaningful recovery is more likely over the longer term.
What should investors watch out for?
The US interest rate outlook remains an important factor for precious metals. Higher interest rates and bond yields generally increase the opportunity cost of holding non-yielding assets such as gold and silver.
According to Subburaj, US rate futures were indicating a 72% probability of a 25-basis-point Federal Reserve rate hike in December. The US employment report scheduled for November 6 could provide further cues on the central bank’s interest rate trajectory.
A stronger-than-expected jobs reading or higher wage growth could reinforce expectations of tighter monetary policy, potentially putting renewed pressure on bullion prices.
Darshan Desai, CEO of Aspect Bullion & Refinery, said a stronger US dollar, rising crude oil prices and interest rate expectations have weighed on gold prices, while silver has witnessed a sharper correction.
He said buying interest in the Indian bullion market remains cautious, although the festive and wedding season continues to support demand. Volatility could persist in the coming week, with US midterm election results, economic data and geopolitical developments influencing prices. Any sustained recovery, he added, will depend largely on global market cues.
For investors, the recent correction in silver also highlights the volatility involved in taking positions in the metal. Subburaj advised keeping fresh futures positions small ahead of the November 6 US employment data.
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Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Readers should consult certified experts before making any investment decisions.